Question

Please help with these questions:

Question 18 0.2 pts Which one of the following pairs of goods is likely to have a negative cross- price elasticity of demand? O manicures and pedicures sofas and dining room tables O purses and backpacks shoes and socks trucks and sedans Question 19 0.2 pts When two goods are substitutes for each other, what will the cross-price elasticity be? O It will be positive O It is unaffected by goods being substitutes O The cross-price elasticity will initially be positive but eventually become negative. O It will be negative. O It will be zero. Question 20 0.2 pts If the cross-price elasticity of demand between Good A and Good B is 2, the price of Good B increases, and the price elasticity of demand for Good B is elastic, we can expect to see for Good A a change in the quantity demanded O negative, large O positive, zero O negative, infinite O negative, one-for-one O positive, small

Answer 1

Answer 18 -   shoes & shocks

Explanation - When two related goods are complement to each other then the cross price elasticity will be negative.

Answer 19 - It will be positive

Explanation - When two related goods are substitute to each other then the cross price elasticity will be positive.

Answer 22 - More price elastic