We would expect the cross elasticity of demand between dress shirts and ties to be A.positive,...

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We would expect the cross elasticity of demand between dress shirts and ties to be A.positive,...

We would expect the cross elasticity of demand between dress shirts and ties to be

A.positive, indicating normal goods.

B.positive, indicating complementary goods.

C.negative, indicating substitute goods.

D.negative, indicating complementary goods.

business economics

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Answer 1

Answer #1

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Option D

D.negative, indicating complementary goods.

A dress shirt and ties are used together means the goods are complements, so the relationship between the price of one and quantity of other is in inverse as the price of dress increases the demand for ties decreases.

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Answer 2

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A consumer earns I a week and spends his entire weekly income on new dress shirts...

For the following pairs of goods, would you expect the cross-price elasticity of demand to be...

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Add Answer to: We would expect the cross elasticity of demand between dress shirts and ties to be A.positive,...

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We would expect the cross elasticity of demand between dress shirts and ties to be A.positive,...