A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca-Cola isPepsi and Coca-Cola are:Select one:O a. 5; substitutesO b. 0.2; complementsO c. 50; substitutesO d. 5; complementsIn order to prove that peanut butter and Jelly are complements, one shouldmeasure theand get a***Destroy all sheets/clear white board during the exam before logging out(make sure the proctor sees you)**Select one:O a. cross-price elasticity; negative numberO b. price elasticity of demand; number greater than 1 (in absolute value)O c.cross-price elasticity; positive numberO d. price elasticity of demand; number less than 1 (in absolute value)

10% fall in the price of Pepsi demand for Coca-cola decreases by 50%

A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca- Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca- Cola is Pepsi and Coca-Cola are: Select one: O a. 5; substitutes O b. 0.2; complements O c. 50; substitutes O d. 5; complements

A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca- Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca- Cola is Pepsi and Coca-Cola are: Select one: O a. 5; substitutes O b. 0.2; complements O c. 50; substitutes O d. 5; complements

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

A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-
Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca-
Cola is
Pepsi and Coca-Cola are:
Select one:
O a. 5; substitutes
O b. 0.2; complements
O c. 50; substitutes
O d. 5; complements
In order to prove that peanut butter and Jelly are complements, one should
measure the
and get a
***Destroy all sheets/clear white board during the exam before logging out
(make sure the proctor sees you)**
Select one:
O a. cross-price elasticity; negative number
O b. price elasticity of demand; number greater than 1 (in absolute value)
O c.
cross-price elasticity; positive number
O d. price elasticity of demand; number less than 1 (in absolute value)

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