6. The cross-price clasticity of demand for commodity A with respect to the price of Commodity B s negativg; the cross-price elasticity demand of Commodity C with respect to the price of Commodity B is positive. Which of the following is true? O Commodity A and Commodity B must be complements (b. Commodity C and Commodity B must be complements C. Commodity A and Commodity C must be substitutes d. None of the above

6. The cross-price clasticity of demand for commodity A with respect to the price of Commodity B s negativg; the cross-price elasticity demand of Commodity C with respect to the price of Commodity B is positive. Which of the following is true? O Commodity A and Commodity B must be complements (b. Commodity C and Commodity B must be complements C. Commodity A and Commodity C must be substitutes d. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 1 Quantity demanded Price Elasticity 1 100 $5 ? 2 80 $10 ? 3 60 $15 ? 4 40 $20 ? 5 20 $25 ? 5 10 $30 ? Use the hypothetical demand schedule for movies above and d etermine the price elasticity of demand at each quantity demanded using the point formula. a. Quantity demanded Price Elasticity 1 100 $5 -0.2 2 80 $10 -0.5 3 60 $15 -1.0 4 40 $20 -2.0 5 20 $25 -2.5 5 10 $30 ----- b. Quantity demanded Price Elasticity 1 100 $5 ------ 2 80 $10 -0.2 3 60 $15 -0.5 4 40 $20 -1.0 5 20 $25 -2.0 5 10 $30 -2.5 c. Quantity demanded Price Elasticity 1 100 $5 -0.2 2 80 $10 -0.5 3 60 $15 -1.0 4 40 $20 -2.0 5 20 $25 -2.5 5 10 $30 -3.0 d.…
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