You are the manager of a local flower shop and you compete with one other flower shop in your area. You estimate the cross-price elasticity of demand between your flowers and your competitor's flowers to be 2.60. If your competitor decreases the price of her flowers by 2 percent, you should expect which of the following?

A) a 5.2 percent decrease in the demand for your flowers
B) a 5.2 percent increase in the demand for your flowers
C) a 0.77 percent decrease in the demand for your flowers
D) a 0.77 percent increase in the demand for your flowers


A) a 5.2 percent decrease in the demand for your flowers

Anthropology & Archaeology

You might also like to view...

African American Vernacular English (AAVE) is an incomplete linguistic system that is able only to express thoughts and ideas related to life in inner-city communities.

Answer the following statement true (T) or false (F)

Anthropology & Archaeology

At what age do Mundurucu boys leave their mother's household and begin to live in the men's house?

a. 13 b. 21 c. 12 d. 18

Anthropology & Archaeology

A Tuareg man wears his veil at different positions on his face in different social situations. This is an example of:

a. Universal grammar. b. Nonverbal communication. c. The universal relationship between language and action. d. The genetic patterning of behavior. e. Bad manners.

Anthropology & Archaeology

The dominant view of the self in American society is egocentric

Indicate whether the statement is true or false

Anthropology & Archaeology