Respuesta :
Answer:
The cross-price elasticity is - 0.8.
Explanation:
The price of antique furniture increased by 10 percent and the quantity demanded decreased by 30 ​percent, and with no change in the price of refinishing products​, the quantity of refinishing products demanded decreased by 8 percent.
The cross-price elasticity of demand measures the change in the demand for a product due to a change in the price of a related good. Negative cross-price elasticity means the goods are complements. Positive cross-price elasticity implies that the goods are substitutes.
Cross price elasticity Â
= [tex]\frac{\Delta Qy}{\Delta Px}[/tex]
= [tex]\frac{-8}{10}[/tex]
= - 0.8 Â
The cross price elasticity is negative which means that the goods are complements.
