Microeconomics Elasticity Question?
There is an elesticity question on Micro Econ homework I do not understand in the slightest. Could somebody help me figure out how to do it?
As the price of CHAM decreased by 20%, the quantity of CHAM sold increased by 30%, and the quantity of PERF demanded increased by 15%
What is the cross-price elasticity of demand between perf and cham?
And then finally it asks true or false on 4 questions
1. Cham and perf are substitutes
2. cham and perf are unrelated
3. The demand for cham is price inelastic in this price range
4. The demand for perf is price elastic in this price range
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Whom are Micro Econ? Should we all know? Elastisity is not to be used in finances. People like you ruined the American/ global markets. This is not the eighties.