1. Business
  2. Economics
  3. a rise in the price of a smoothie from 2...

Question: a rise in the price of a smoothie from 2...

Question details

A rise in the price of a smoothie from $2 to $3 results in a decrease in the quantity of smoothies demanded from 220 million to 180 million a day and at todays price of a muffin, $1.50, the quantity of muffins demanded increases from 80 million to 100 million a day Price (dollars per smoothie) 4. Calculate the cross elasticity of demand for muffins with respect to the price of a smoothie The cross elasticity of demand for muffins with respect to the price of a smoothie is 160180200220 Quantity (milions of smoothies per day)

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution