Homework Answers
The cross price Elasticity is positive if the increase in price of one good increases the quantity demanded of the other good. This is possible in case of substitute goods. Coffee and tea are the only substitute goods.
So the correct answer is tea and coffee.
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9. The pair of items that is likely to have the largest positive cross-price elasticity of...
26)What pair of goods is likely to have the largest cross-price elasticity in absolute value? Multiple...
26)What pair of goods is likely to have the largest cross-price elasticity in absolute value? Multiple Choice a)Ramen noodles and a Rolex watch b)Cross-price elasticity is always negative, and simply reported in absolute value. c)Butter and margarine d)Peanut butter and jelly 27)If the price of butter increases 5 percent and the amount of margarine purchased increases 25 percent, then the cross-price elasticity of these goods is: Multiple Choice a)0.2. b)- 0.2. c)5. d)- 5. 28)The determinants of price elasticity of...
Would you expect the cross price elasticity to be positive or negative for the following set...
Would you expect the cross price elasticity to be positive or negative for the following set of goods? (a) Hot dogs and hot dog buns. (b) Gasoline and electric cars. (c) Coffee and tea (d) Beer and pretzels
Question 2: For each of the following statements, state the relevant elasticity (e.g. price elasticity of...
Question 2: For each of the following statements, state the relevant elasticity (e.g. price elasticity of demand, price elasticity of supply, income elasticity of demand, cross-price elasticity of demand) and state what its absolute value should be (negative, positive or zero?): Example: Question: The demand for coffee increases when the price of tea increases Answer: the cross-price elasticity of demand for coffee with respect to changes in tea prices is positive a. The demand for cars increases during times of...
QUESTION 47 zero. The cross price elasticity for Coke for a change in the price of...
QUESTION 47 zero. The cross price elasticity for Coke for a change in the price of Pepsi is likely to be negative but less negative than - I. positive negative and more negative than -1. QUESTION 48 negative and more negative than-1. The cross price elasticity for Papa John's pizza for a change in the price of Pizza Hut pazais negative but less negative than-1. zero. positive.
If the price of Pepsi falls while the demand for Coca-Cola falls is the crossprice elasticity...
If the price of Pepsi falls while the demand for Coca-Cola falls is the crossprice elasticity of demand between the pair of products likely to be positive or negative? The cross-price elasticity of demand between substitutes is most likely and the cross-price elasticities of demand between complements is most likely
2. Which of the following statements is true? A) The price elasticity of demand is positive...
2. Which of the following statements is true? A) The price elasticity of demand is positive when there is an inverse relationship between price and quantity demanded. B) A positive income elasticity indicates that demand for a good rises as consumer income falls C) A positive cross-price elasticity for two goods A and B would arise if A and B were demand complements. D) A negative cross-price elasticity for two goods A and B would arise if A and B...
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
3.What good is most likely to have a negative income elasticity of demand? designer clothing steak...
3.What good is most likely to have a negative income elasticity of demand? designer clothing steak pizza caviar instant noodles 4. When two goods are substitutes for each other, what will the cross-price elasticity be? It will be zero. The cross-price elasticity will initially be positive but eventually become negative. It will be negative. It is unaffected by goods being substitutes. It will be positive. 5. A nation will engage in voluntary trade if the terms are mutually beneficial for...
please explain your answer :) Ski trips and ski jackets are complements. The cross elasticity of...
please explain your answer :)
Ski trips and ski jackets are complements. The cross elasticity of demand for ski trips with respect to the price of a ski jacket is O A. positive, negative, or zero O B. zero O C. positive OD. negative Click to select your annar
If the coffee is the premium coffee, isn't it likely to have positive income elasticity, whereas...
If the coffee is the premium coffee, isn't it likely to have positive income elasticity, whereas its inferior competitors are likely to have negative?
Question 2: For each of the following statements, state the relevant elasticity (e.g. price elasticity of demand, price elasticity of supply, income elasticity of demand, cross-price elasticity of demand) and state what its absolute value should be (negative, positive or zero?): Example: Question: The demand for coffee increases when the price of tea increases Answer: the cross-price elasticity of demand for coffee with respect to changes in tea prices is positive a. The demand for cars increases during times of...
QUESTION 47 zero. The cross price elasticity for Coke for a change in the price of Pepsi is likely to be negative but less negative than - I. positive negative and more negative than -1. QUESTION 48 negative and more negative than-1. The cross price elasticity for Papa John's pizza for a change in the price of Pizza Hut pazais negative but less negative than-1. zero. positive.
If the price of Pepsi falls while the demand for Coca-Cola falls is the crossprice elasticity of demand between the pair of products likely to be positive or negative? The cross-price elasticity of demand between substitutes is most likely and the cross-price elasticities of demand between complements is most likely
2. Which of the following statements is true? A) The price elasticity of demand is positive when there is an inverse relationship between price and quantity demanded. B) A positive income elasticity indicates that demand for a good rises as consumer income falls C) A positive cross-price elasticity for two goods A and B would arise if A and B were demand complements. D) A negative cross-price elasticity for two goods A and B would arise if A and B...
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
please explain your answer :)
Ski trips and ski jackets are complements. The cross elasticity of demand for ski trips with respect to the price of a ski jacket is O A. positive, negative, or zero O B. zero O C. positive OD. negative Click to select your annar
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