Chicken and fish are substitutes. Therefore, the cross elasticity of demand between chicken and fish is
a. negative.
b. positive.
c. zero.
d. Any of the above is possible.
b
You might also like to view...
Market equilibrium
i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity. A) ii only B) iii only C) ii and iii D) i only E) i and ii
When the price of coffee increases from $4 to $5 per pound, Elizabeth’s demand for coffee ______.
a. increases by 5 pounds
b. increases by 10 pounds
c. decreases by 5 pounds
d. decreases by 10 pounds
When the average price of videocassette recorders (VCRs) falls, the result is
A. an increase in the quantity of VCRs demanded. B. an increase in the quantity of VCRs supplied. C. a decrease in the quantity of VCRs demanded. D. an increase in supply of VCRs.
In foreign exchange markets, who demands dollars and who supplies dollars?
What will be an ideal response?