The cross elasticity of monthly demand for gel pen when the price of refills increases by $20$ % and demand for gel pens falls by $30$ % is equal to _____.

- 0.71

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+ 0.25

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- 0.19

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- 1.5

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Solution

The correct option is D $- 1.5$
Cross price elasticity $= \frac{% △ Q_{x}}{% △ P_{y}}$ $= \frac{(-) 30 %}{20 %} = - 1.5$ .

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The cross elasticity of monthly demand for gel pen when the price of refills increases by 20% and demand for gel pens falls by 30% is equal to _____.

The correct option is D −1.5Cross price elasticity =%△Qx%△Py =(−)30%20%=−1.5.

The cross elasticity of monthly demand for gel pen when the price of refills increases by $20$ % and demand for gel pens falls by $30$ % is equal to _____.

The correct option is D $- 1.5$
Cross price elasticity $= \frac{% △ Q_{x}}{% △ P_{y}}$ $= \frac{(-) 30 %}{20 %} = - 1.5$ .