Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price...

Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if: (LO1)

                  a. The price of good X decreases by 5 percent.

                 b. The price of good Y increases by 8 percent.

                 c. Advertising decreases by 4 percent.

                d. Income increases by 4 percent.

Explain the laws of demand and supply, and identify factors that cause demand and supply to shift.