(Answered) If elasticity is given by, Exy =%AY, then elasticity is negative when:If elasticity is given by,…

➤ How do you calculate Exy and determine when it is negative?
Calculate Exy using Exy = (%ΔQx) / (%ΔPy), where %Δ equals (new−old)/old ×100 or midpoint method for accuracy. Compute percentage changes, then divide. Exy is negative when %ΔQx and %ΔPy have opposite signs. A price increase in Y with a decrease in Qx gives a negative value, signaling complements.