MCQ 9If the cross-price elasticity of demand between products X and Y is positive, we can infer that:Aproducts X and Y are complementary goodsthe demand for both products must be price inelastic, to ensure that a fall in the price of one of the products does not lead to a decrease in the demand for theВother productCI do not want to answer this question.Dthe price elasticity of demand for both products must be positiveEthe income elasticity of demand for both products must be negative, because the multiplication of two negative numbers gives a positive numberFproducts X and Y are substitute goods

Cross price elasticity of demand refers to percentage change in quantity demanded of good 1 due to…

MCQ 9 If the cross-price elasticity of demand between products X and Y is positive, we can infer that: A products X and Y are complementary goods the demand for both products must be price inelastic, to ensure that a fall in the price of one of the products does not lead to a decrease in the demand for the other product C I do not want to answer this question. D the price elasticity of demand for both products must be positive E the income elasticity of demand for both products must be negative, because the multiplication of two negative numbers gives a positive number F products X and Y are substitute goods

MCQ 9 If the cross-price elasticity of demand between products X and Y is positive, we can infer that: A products X and Y are complementary goods the demand for both products must be price inelastic, to ensure that a fall in the price of one of the products does not lead to a decrease in the demand for the other product C I do not want to answer this question. D the price elasticity of demand for both products must be positive E the income elasticity of demand for both products must be negative, because the multiplication of two negative numbers gives a positive number F products X and Y are substitute goods

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Could you please help me understand why the correct answer is what it is for each of these true/fase statments? I have tried this problem a couple times and I keep getting it incorrect. If you could show you you used your calculation solution to determine elasticity, that would be very helpful. Thanks!
1-ECON101
When the price of movie tickets in a certain town was increased, the movie-theaters' revenues increased. This suggests that the demand for movie tickets in that town has a price-elasticity of demand that is: Group of answer choices 1. -1.4 2. 1.0 3. .45 4. 4.5
Suppose when the consumer's income rises by 100%, the consumer's consumption of good x only increases by 1%. We can infer that the consumer's income elasticity for good y is: | a) −1 b) -0.01 c) 1 d) 0.0
When a freeze in Florida increased the price of oranges in a recent year, total revenue earned by orange producers increased. We can infer from these facts that the demand for oranges is: 1. A) inelastic 2. B) unit elastic 3. C) elastic 4. D) upward sloping 5. E) infinitely elastic