00:01
So here we're talking about elasticity and not just any elasticity.
00:05
We're talking about the cross elasticity of demand.
00:11
And that is, again, it looks kind of normal.
00:16
It's the relationship between a change in quantity demand and a change in price.
00:21
And i say, well, aha, this is just the normal elasticity.
00:25
But here it's a cross two goods.
00:27
That's where cross comes from, right? it's the cross between two goods.
00:31
So it's the price of oranges versus the quantity consumed of apples.
00:36
Now, you could do it the other way around too.
00:38
You could compute a cross elasticity of demand for how the price of apple juice affects the quantity of orange juice.
00:44
But here we're given information about the price of orange juice and the quantity of apple juice, right? so in particular, we're given that the percent change in the price of orange juice is plus 20 percent...