Question

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

Answer 1

Ans. = (Option A) Negative, because These Goods are Compliments.

Rifles and Bullets are Complementary Goods as these are demanded simultaneously.

If Price of one good Rises then demand for other good Decreases like If Price of Rifles Rises then Demand for Bullets will Decrease as due to Increased Prices people will buy less Rifles and Less Bullets too.

So, There is a Negative Relation between the two and Cross Price Elasticity would be Negative for Rifles and Bullets.

_______________________________________

Please UPVOTE if you find this Answer Helpful and Post your Doubts (if any) in the comment section.

Thanks
_______________________________________