Homework Answers
24. Ans - negative
Explanation:
The cross price elasticity is negative for complementary goods because as the price of good B falls, the quantity demanded of good A rises so there is negative cross price elasticity of demand.
25. Ans - positive
Explanation:
The cross price elasticity is positive for substitute goods because as the price of good B falls, the quantity demanded of good A also falls as now people substitute good A with good B so there is positive cross price elasticity of demand.
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QUESTION 24 if good A and good Bare complements, then the cross price elasticity of demand...
When the income elasticity of demand for a good is negative, one can correctly conclude that:...
When the income elasticity of demand for a good is negative, one can correctly conclude that: total revenue will decrease when the price increases. the good is a substitute. the good is a complement. the good is a normal good. the good is an inferior good. As the price is raised along a straight-line demand curve, the demand curve becomes more elastic. True False Income elasticity of demand is expected to be _____. relatively high for necessities relatively low for...
The cross-elasticity of demand is _________ for substitutes and ___________ for complements. A. the same, negative...
The cross-elasticity of demand is _________ for substitutes and ___________ for complements. A. the same, negative B. positive, the same C. positive, negative D. negative, positive
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....
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.
15. How does the price elasticity of demand change as you move down along a straight line demand ...
15. How does the price elasticity of demand change as you move down along a straight line demand curve? a. it becomes larger in magnitude. b. it becomes smaller in magnitude. c. it doesn't change in magnitude. d. vou can't tell without more information. 16. Quasi-concavity of utility functions insures that with only two goods, these goods must be a. gross substitutes. b. gross complements. c. net substitutes d. net complements. 17. If goods x and y are substitutes, then...
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...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________ and the percentage change in its quantity demanded is ________ than the percentage change in its price. A. Elastic: Smaller B. Elastic: Greater C. Inelastic: Smaller D. Inelastic: Greater Which of the following is not a determinant of the price elasticity of demand? A. Availability of substitutes B. Degree of necessity C. Cost relative to income D. Availability of inputs With a(n) ______ demand,...
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
the price elasticity of demand measures the responsiveness of the change in the
22. The price elasticity of demand measures the responsiveness of the change in the: A) quantity demanded to a change in the price. B) price to a change in the quantity demanded. C) lope re enterprise D) slope of the demand curve to a change in the quantity demanded. 23. The price of gasoline rises 5% and the quantity of gasoline purchased falls 1%. price elasticity of demand is equal to _______ and demand is described as _______ A) 0.2; inelastic B) 5; inelastic C) 0.2; elastic 24. For a...
If a good is inferior, its Multiple Choice Cross-price elasticity is negative. Price elasticity of demand...
If a good is inferior, its Multiple Choice Cross-price elasticity is negative. Price elasticity of demand is negative. Income elasticity of demand is positive. Income elasticity of demand is negative.
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.
15. How does the price elasticity of demand change as you move down along a straight line demand curve? a. it becomes larger in magnitude. b. it becomes smaller in magnitude. c. it doesn't change in magnitude. d. vou can't tell without more information. 16. Quasi-concavity of utility functions insures that with only two goods, these goods must be a. gross substitutes. b. gross complements. c. net substitutes d. net complements. 17. If goods x and y are substitutes, then...
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 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
If a good is inferior, its Multiple Choice Cross-price elasticity is negative. Price elasticity of demand is negative. Income elasticity of demand is positive. Income elasticity of demand is negative.
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