Answer:
The estimated cross price elasticity of demand is -1
Explanation:
Here, we want to calculate the cross-price elasticity value
Mathematically, the cross price elasticity value is;
Percentage change in quantity of turkey/percentage change in price of chicken
percentage change in quantity of turkey will be
(4750-5000)/5000 = -0.05%
Percentage change in price of chicken will be
(1.9-2.0)/2 = -0.05
So the cross-price elasticity if demand will be ; 0.05/-0.05 = -1
