Cross-price elasticity is used to determine whether goods are: Group of answer choices A. inferior or normal goods B. necessities or luxuries C. none of the answers are correct. D. complements or substitutes

Cross-price elasticity is used to determine whether goods are: Group of answer choices A. inferior or normal goods B. necessities or luxuries C. none of the answers are correct. D. complements or substitutes

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 31CTQ: Economists define normal goods as having a positive income elasticity. We can divide normal goods...

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Question

20. Cross-price elasticity is used to determine whether goods are:

Group of answer choices

A. inferior or normal goods

B. necessities or luxuries

C. none of the answers are correct.

D. complements or substitutes

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You are told that the cross-price elasticity between goods X and Y is 2.0. This means that a. Goods X and Y are normal goods. b. Goods X and Y are inferior goods. c. Goods X and Y are complementary goods. d.Goods X and Yare substitute goods.
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I. Multiple choice. Encircle the correct answer. 1. If the income elasticity of a demand for a good is negative, then the good is a. normal good b. inferior good c. luxury good d. necessity 2. If the cross elasticity of demand between two goods is negative, then the two goods are: a. normal good b. inferior good c. luxury good d. necessity 3. Tennis racquets and tennis balls are likely to have a positive cross elasticity of demand. a. true b. false 4. Price elasticity of demand a. responsiveness of demand to changes in the price of some other product. b. responsiveness of demand for a product to changes in its own price. c. increase in real income may cause demand to fall. d. responsiveness of demand for a product to changes in consumer income. 5. Cross-elasticity of demand a. responsiveness of demand to changes in the price of some other product. b. responsiveness of demand for a product to changes in its own price. c. increase in real income may cause demand to fall. d.…
question 18
When consumers' incomes increased 10 percent, the quantity of milk bought increased 5 percent. This result means A. milk is a luxury. B. milk is a necessity. C. the demand for milk is income elastic. D. milk is an inferior good.
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If the cross-price elasticity of demand for good A when the price of B changes is negative that indicates: a. That goods A and B are supplementary goods. b. That goods A and B are complementary goods. c. That goods A and B are necessity goods. d. That goods A and B are inferior goods.
u are told that the cross-price elasticity between goods X and Y is2.0. This means that a. Goods X and Y are normal goods. b. Goods X and Y are inferior goods. c. Goods X and Y are complementary goods. Goods X and Yare substitute goods.
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