If a 10 percent decrease in the price of one good generates a 3 percent increase in the quantity demanded for another good, then the
a. two goods are complementary
b. cross elasticity between the two goods is positive
c. two goods are substitutes
d. price elasticity of demand for the good whose quantity demanded increased must be inelastic
e. price elasticity of demand for the good whose quantity demanded increased must be elastic
A
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In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue
(Source: New York Times, July 28, 2012 ) We learn from the article that despite the larger quantity of lobster caught, the total revenue of the fisherman decreased. This fact means that the demand for lobster is A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic.
The statement, "My iPhone is worth $300" represents money's function as
A) a standard of deferred payment. B) a unit of account. C) a store of value. D) a medium of exchange.
What are some of the likely consequences of price ceilings on agricultural inputs?
What will be an ideal response?
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Indicate whether the statement is true or false