Question

Given an example of two goods that are substitutes and explain why the cross price elasticity of demand is positive.

Аавьсср | АавьсcDe AaBbc AaBbcc Аав Аавьс. Аавьссон Аавьсср Аавьсср 1 Normal No Spaci... Heading 1 Heading 2 Subtitle Subtle Em... Emphasis Intense E... Styles Title Uw remu capital account? 16. Given the following bids to buy a stock, what is the price elasticity of demand between $30 and $50? Please show your work $10 $20 $20 $30 $30 $40 $40 $50 $50 $60 $60 17. Given an example of two goods that are substitutes and explain why the cross price, elasticity of demand is positive. 18 If your business finds that quantity demanded rises by 5% when you lower prices by 8%, what is the price elasticity of demand for your product? What is the percent change in total revenue? What would be an example of a good or service that would have this result? Why? 19. Over the business cycle it is advisable for businesses to sell items that are both income elastic and income inelastic. Explain carefully why. 20. Given the following bids to supply used textbooks to a market, calculate the price elasticity of supply between prices $25 and $35. $20 $20 $25 $25 $25 $25 $30 $35 $35 $35 $40 $40 $45 arkat

question 17

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Answer 1

Substitute are those goods which can replace each other.

the best example can be tea and coffee .

If the price of tea rises then people will consume more coffee as compared to tea and vice versa.

Cross price elasticity of demand is a relative factor that helps in determining that whether the two goods are substitutes or complements.

The main reason is already being explain that why cross price elasticity of demand of substitutes is positive .

It is mainly due to when price of one goods rises then demand for other goods increases.

An increak in pace of tenten Thereases the demard q for the Coffee G oa Sim A to B