2. Economics
3. suppose a 5 decrease in the price of whole wheat...

# Question: suppose a 5 decrease in the price of whole wheat...

###### Question details

Suppose a 5% decrease in the price of whole wheat bread produces a 10% increase in demand for whole wheat bread and a 15% increase in demand for butter.

a) computer the demand elasticity for whole wheat bread.

b) define the cross elasticity of demand for butter w/ respect to bread as percentage change in butter demand /(divided) percentage change in the price of whole wheat bread. compute the cross elascticity of butter w/ respect to whole wheat bread.