2 percent increase in the price of milk causes a 4 percent reduction in the quantity demanded of chocolate syrup. 1. How should this condition be interpreted? * a. The demand for chocolate syrup is cross-price inelastic, consumers react weakly to the change in the price of milk. b. The demand for chocolate syrup is cross-price elastic, consumers react strongly to the change in the price of milk. c. The demand for chocolate syrup is cross-price elastic, consumers react weakly to the change in the price of milk. d. The demand for chocolate syrup is cross-price inelastic, consumers react strongly to the change in the price of milk. 2. The consumers who purchase milk consider the demand chocolate syrup as * a. a normal good b. an inferior good
A 2 percent increase in the
1. How should this condition be interpreted? *
a. The
b. The demand for chocolate syrup is cross-price elastic, consumers react strongly to the change in the price of milk.
c. The demand for chocolate syrup is cross-price elastic, consumers react weakly to the change in the price of milk.
d. The demand for chocolate syrup is cross-price inelastic, consumers react strongly to the change in the price of milk.
2. The consumers who purchase milk consider the demand chocolate syrup as *
a. a normal good
b. an inferior good
c. a substitute good
d. a complementary
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