If the cross-price elasticity between Good A and Good B is - 1.5 and the percentage change in quantity demanded of Good B is 15 percent, what is the percentage change in the price of Good A? a. - 10 percent b. - 0.10 percent c. - 11.50 percent d. - 1 percent e. 11.50 percent

Option (a) is correct.

Explanation:

Given that,

Cross-price elasticity between Good A and Good B = - 1.5

Percentage change in quantity demanded of Good B = 15 percent

Cross-price elasticity = Percentage change in quantity demanded of Good B : Percentage change in the price of Good A

-1.5 = 15 : Percentage change in the price of Good A

Percentage change in the price of Good A = 15 : (-1.5)

= - 10 percent