Question 5 The price of input X decreases by 15%. In response, the quantity of input Y demanded increases by 6%. We would conclude: O that X and Y are substitute inputs and the cross-elasticity of factor demand is equal to 2.50 O that X and Y are complementary inputs and the cross-elasticity of factor demand is equal to -2.50 O that X and Y are substitute inputs and the cross-elasticity of factor demand is equal to 0.40 O that X and Y are complementary inputs and that the cross-elasticity of factor demand is equal to -0.40

Question 5 The price of input X decreases by 15%. In response, the quantity of input Y demanded increases by 6%. We would conclude: O that X and Y are substitute inputs and the cross-elasticity of factor demand is equal to 2.50 O that X and Y are complementary inputs and the cross-elasticity of factor demand is equal to -2.50 O that X and Y are substitute inputs and the cross-elasticity of factor demand is equal to 0.40 O that X and Y are complementary inputs and that the cross-elasticity of factor demand is equal to -0.40

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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