What the answer for cross-price elasticity between C and D

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∻Solution∻ ‖ a ⋮ Identify the Price Change: The price of Product C increases from $5 to $11, which is a change of $6. The percentage change in price is calculated as: $$ ext{Percentage Change in Price} = \frac{(11 - 5)}{(11 + 5)/2} imes 100 = \frac{6}{8} imes 100 = 75\%$$ ‖ ‖ b ⋮ Identify the Quantity Change: The quantity demanded for Product D increases from 10 units to 18 units, which is a change of 8 units. The percentage change in quantity demanded is calculated as: $$ ext{Percentage Change in Quantity} = \frac{(18 - 10)}{(18 + 10)/2} imes 100 = \frac{8}{14} imes 100 \approx 57.1\%$$ ‖ ‖ c ⋮ Calculate Cross-Price Elasticity: The cross-price elasticity of demand is calculated using the formula: $$E_{C,D} = \frac{ ext{Percentage Change in Quantity Demanded of D}}{ ext{Percentage Change in Price of C}} = \frac{57.1\%}{75\%} \approx 0.7613$$ Rounding to one decimal place gives us approximately 0.8. ‖ ∻Answer∻ ⚹ The cross-price elasticity between Products C and D is approximately 0.8 ⚹ ∻Key Concept∻ ⚹ Cross-price elasticity measures how the quantity demanded of one good responds to a change in the price of another good. ⚹ ∻Explanation∻ ⚹ A positive cross-price elasticity indicates that the two goods are substitutes, meaning that as the price of Product C increases, the quantity demanded for Product D also increases. ⚹◊How does the concept of cross-price elasticity help determine the relationship between goods C and D in the context of changes in their prices?⍭ Generate me a similar question◊

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