If the cross elasticity of demand between peanut butter and milk is -1.11, then are peanut butter and milk substitutes or complements?

What will be an ideal response?


Because the cross elasticity of demand is negative, peanut butter and milk are complements.

Economics

You might also like to view...

Use the figure below to answer the following question.What is the amount of deadweight loss after the government imposes the excise tax on the market?

A. $4 B. $36 C. $32 D. $2 

Economics

According to the above table, if real Gross Domestic Product (GDP) equals $30,000, what is the average propensity to consume?

A) 0.75 B) 0.67 C) 0.8 D) 0.87

Economics

Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity demanded?

A) Q0 B) Q1 C) Q2 D) Q2 - Q0

Economics

Which of the following is not money?

a. currency b. travelers' checks c. demand deposits d. savings bonds e. NOW accounts

Economics