Math Problem Statement
If the price of good X increases by 5%, and that causes the quantity demanded of good Y to increase by 10%, then the cross elasticity of demand for good Y, with respect to the price of good X, is , and the two goods are .
Solution
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Math Problem Analysis
Mathematical Concepts
Cross Elasticity of Demand
Substitute Goods
Percentage Change
Formulas
Cross elasticity of demand formula: E_{xy} = (% change in quantity demanded of good Y) / (% change in price of good X)
Theorems
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Suitable Grade Level
Grades 9-12
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