Homework Answers
Cross price elasticity is calculated by dividing the % change in quantity demanded of good A by the % change in price of good B. A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products.
McIntosh and Golden Delicious are substitutes since the cross price elasticity is positive. A cross-price elasticity of 0.8 implies that a 1% increase in the price of McIntosh apples would increase the quantity of Golden Delicious demanded by 0.8%.
Apples and juice are substitutes since coefficient of elasticity is positive.
Apples and cheese are complements since coefficient of elasticity is negative.
Apples and beer are weak substitutes and can be considered independent.
Add Answer to:
11. Suppose that the cross-price elasticity of demand between McIntosh and Golden Delicious apples is 0.8,...
1) A negative cross-elasticity of demand means that the goods in question are _____ while a...
1) A negative cross-elasticity of demand means that the goods in question are _____ while a negative income elasticity means that the good in question is a(n) _____. substitutes; normal good substitutes; inferior good complements; normal good complements; inferior good 2) Alex finds a new job as an economist at a factory that makes two types of chips: computer and potato. Alex calculates the cross elasticity of demand between computer and potato chips to be a very small negative number....
The cross-price elasticity of demand between good X and good Yis -0.8. Given this information, which...
The cross-price elasticity of demand between good X and good Yis -0.8. Given this information, which of the following statements is true? Goods X and Y are complements. The demand for goods X and Y is income elastic. The demand for goods X and Y is elastic. • Goods X and Y are substitutes. We were unable to transcribe this image
Question 8 If the cross price elasticity measured between items A and B is negative, the...
Question 8 If the cross price elasticity measured between items A and B is negative, the two products are referred to as: complements substitutes inelastic as compared to each other could be either substitutes or complements none of them
18) The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes...
18) The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes option offered from a cell phone provider would be A) positive if subscribers consider the services complements to each other. B) positive if subscribers consider the services substitutes for each other. C) negative if subscribers consider the services substitutes for each other. D) negative no matter if subscribers consider the services substitutes or complements for each other.
Question 3 The cross-price elasticity of demand between rifles and bullets is likely to be: negative,...
Question 3 The cross-price elasticity of demand between rifles and bullets is likely to be: negative, because the goods are complements. positive, because the goods are complements. O positive, because the goods are substitutes. negative, because the goods are substitutes O « Previous No new data to save. Last checked at 12:02pm S O O c. A # 3 $ 4 % 5 c N 2 6 7 8 9 w e 0 t t у u
In Pioneer Ville, the price elasticity of demand for bus rides is 0.8, the income elasticity...
In Pioneer Ville, the price elasticity of demand for bus rides is 0.8, the income elasticity of bus rides is -1.2 and cross price elasticity of demand for bus rides with respect to gasoline is 1.1. a) Is the demand for bus rides elastic or inelastic? Why? b) Would an increase in the price of bus rides increase the bus companys total revenue? Explain your answer. c) If incomes increase by 5 percent with no change in prices, how will...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
Question 1 Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately...
Question 1 Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean? If the price of grapefruit juice rises by $1.6 more cartons of orange juice will be purchased. A1 percent decrease in the price of grapefruit juice leads to a 6 percent increase in orange juice consumption A6 percent increase in the price of grapefruit juice leads to a 1 percent increase in orange juice consumption The demand for orange...
Suppose the price elasticity of demand of alcohol is -2, the cross-price elasticity of demand between...
Suppose the price elasticity of demand of alcohol is -2, the cross-price elasticity of demand between alcohol and the price of marijuana is -0.5, and the price of marijuana has increased by 10% because of the drug busts. What would have to happen to the price of alcohol to exactly offset the rise in the price of marijuana and leave the quantity demanded of alcohol unchanged?
Question 7 Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately...
Question 7 Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean? O If the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased. OA1 percent decrease in the price of grapefruit juice leads to a6 percent increase in orange juice consumption The demand for orange juice is 6 times greater than the demand for grapefruit juice. A6 percent increase in the price of...
The cross-price elasticity of demand between good X and good Yis -0.8. Given this information, which of the following statements is true? Goods X and Y are complements. The demand for goods X and Y is income elastic. The demand for goods X and Y is elastic. • Goods X and Y are substitutes. We were unable to transcribe this image
18) The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes option offered from a cell phone provider would be A) positive if subscribers consider the services complements to each other. B) positive if subscribers consider the services substitutes for each other. C) negative if subscribers consider the services substitutes for each other. D) negative no matter if subscribers consider the services substitutes or complements for each other.
Question 3 The cross-price elasticity of demand between rifles and bullets is likely to be: negative, because the goods are complements. positive, because the goods are complements. O positive, because the goods are substitutes. negative, because the goods are substitutes O « Previous No new data to save. Last checked at 12:02pm S O O c. A # 3 $ 4 % 5 c N 2 6 7 8 9 w e 0 t t у u
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
Question 1 Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean? If the price of grapefruit juice rises by $1.6 more cartons of orange juice will be purchased. A1 percent decrease in the price of grapefruit juice leads to a 6 percent increase in orange juice consumption A6 percent increase in the price of grapefruit juice leads to a 1 percent increase in orange juice consumption The demand for orange...
Question 7 Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean? O If the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased. OA1 percent decrease in the price of grapefruit juice leads to a6 percent increase in orange juice consumption The demand for orange juice is 6 times greater than the demand for grapefruit juice. A6 percent increase in the price of...
Most questions answered within 3 hours.
-
You are the operations manager of a firm that uses the
continuous review inventory control system....
asked 1 hour ago -
Cost and fair value data for the trading debt securities of
Wildhorse Company at December 31,...
asked 3 hours ago -
In a population of jaguars, a gene with two alleles encodes the
fur color. Allele B...
asked 4 hours ago -
Two copper wires, one 1.80 times the diameter of the other, have
the same current flowing...
asked 4 hours ago -
9. In 2003 the price of ‘home heating oil’ substantially
increased during the harsh winter. In...
asked 4 hours ago -
Match the key paradoxes of negotiation.
Claiming Value
Sticking by your principles
Sticking with your strategy...
asked 5 hours ago -
Question text Suppose a sample of 28 observations is taken from
a population, and the sample...
asked 5 hours ago -
The mayor of a small town estimates that 33% of the
residents in the town favor...
asked 6 hours ago -
1. True or false: According to the Gordon Growth Model, firms
that pay dividends will always...
asked 7 hours ago -
20
Lansing Corporation reported net income of $67 million for last
year. Depreciation expense totaled $15...
asked 7 hours ago -
Write a MATLAB userdefined function that calculates the product and
the ratio of two variables x...
asked 7 hours ago -
Timia needs some cash in a hurry. She owns her car outright and
is considering a...
asked 7 hours ago