Question

who live near a bus route, a subway station, or a commuter ral ine, snsportation provides a substitute to driving their own cars So, for thes the cross-price elasticity of demand between gasoline and public ortation is positive. ich of the following pairs of goods is likely to have a negative cross-price asticity of demand? b.zero. 6.negaive a. orange juice and grapefruit juice hot dogs and hamburgers 32.In order to prove that Buckley's cough syrup and Fisherman's Friends loaenges are substitutes, one should measure the a. cross-price elasticity, negative number b. price elasticity of demand: number less than 1 (n absolute value) C. price elasticity of demand, number greater than 1 (n absolute value) d. cross-price elasticity, positive number tety b. pancakes and maple synup d. peanuts and cat food and get a 33. A firm finds that a 4 percent increase in the price that it charges results in a 2 percent increase in the quantity supplied of the good it produces. Calculate the price elasticity of supply and characterize the product a. 2; The product is elastic. c. 50%; The product is inelastic b.02.The product is inelastic d.0.5 The product is inelastic 34. Anipuk's Unbelievable Umbrellas knows that the price elasticity of supply for its umbrellas is 2. What percentage change in the price of umbrelas would result in a 30 percent increase in the quantity supplied? a. 6.7 percent b15 percent c. 60 percent d. impossible to determine without additional information a./ paid $130 for a printer last week. This week the same store is selling the same printer for $110. b. "Sobeys was having a sale on Chapman's ice cream so I bought 6 litres c. "I sold my Blu-ray copy of Avatar for $18 at a garage sale, even though I was willing to sell it for $10 d. "I was all ready to pay $300 for a new leather jacket that I had seen in Hudson's Bay, but I ended up paying only $180 for the same jacket because it was on sale 35. Which of the statements below best describes the concept of consumer surplus? $85 even though he was willing to pay $120. The marginal cost of the san Which of the following statements is NOT true? a. Producer surplus is $40 b. The lowest price that Hardware House would sell the saw for wo C The producer surplus is $35 and the consumer surplus is $40 d. The marginal benefit of the saw to Steven K. is $120 36. Assume that Steven K. buys a new circular saw at Hardware House for a pric

Answer 1

31). Option B. Pancakes and maple syrup are used together so they are complements. And complements have negative cross price elasticity

32) Option A. As mentioned in 31), complements have negative cross price elasticity

33) Option D. This is because price elasticity = % change in Qs / % change in P. Also since elasticity is less than 1, it is inelastic

34) Option B

35) Option D.