The quantity demanded of video game controllers increased from 1,800 to 1,900 when the price of video game consoles decreased from $300 to $275. What is the estimated cross-price elasticity of demand for video game controllers? Round your answer to the nearest hundredth. If elasticity is negative, make sure to include the "-" sign in your answer.

-0.67

Explanation:

Given that,

Initial quantity demanded for video game controllers = 1,800 units

New quantity demanded for video game controllers = 1,900 units

Initial price of video game consoles = $300

New price of video game consoles = $275

Percentage change in quantity demanded for video game controllers:

= (Change in quantity demanded : Initial quantity demanded) * 100

= (100 : 1,800) * 100

= 5.56%

Percentage change in price of video game consoles:

= (Change in price : Initial price) * 100

= (-25 : 300) * 100

= - 8.33%

Therefore, the estimated cross-price elasticity of demand for video game controllers is as follows:

= Percentage change in quantity demanded for video game controllers : Percentage change in price of video game consoles

= 5.56 : (-8.33%)

= - 0.67