The market demand for wheat is Q = 100 - 2p + 1pb, where pb is the price of barley. The cross price elasticity of demand for wheat with respect to barley
A) cannot be calculated from just the information provided.
B) is negative.
C) suggests that wheat and barley are complements.
D) equals 1.
A
You might also like to view...
A product's price elasticity of demand depends critically on the availability of substitutes
Indicate whether the statement is true or false
If output changes in fixed proportion to a change in all of a firm’s productive resources, the firm has
a. constant marginal returns. b. constant returns to scale. c. decreasing marginal returns. d. decreasing returns to scale.
The phrase "there's no such thing as a free lunch" is a common way of expressing the concept of efficient markets.
Answer the following statement true (T) or false (F)
"The United States has fallen behind Japan and most of Europe in terms of competitiveness." Do you agree or disagree? Why?
What will be an ideal response?