Consumer buys 10 units of Good A when the price of Good B is $5. When the price of Good B rises to $6 (the price of Good A remaining unchanged) the consumer buys 14 units of Good A. PART A Using an appropriate formula, calculate this Consumer’s cross Elasticity of demand for Good A. Show your working.

/in /by

Consumer buys 10 units of Good A when the price of Good B is $5. When
the price of Good B rises to $6 (the price of Good A remaining
unchanged) the consumer buys 14 units of Good A.

PART
A

Using an appropriate formula, calculate this Consumer’s cross
Elasticity of demand for Good A. Show your working.

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