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.

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.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 8QFR

See similar textbooks

Related questions

Q: The cross elasticity of demand between siopao and catsup is negative. This tells us that___. a.…

A: Cross price elasticity of demand is the responsiveness of the quantity demanded of a good to a…

Q: 3. We are looking at the relationship between goods A and B. If the cross price elasticity of demand…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: For which pairs of goods is the cross-price elasticity most likely to be negative? a. ipad and…

A: Cross elasticity of demand is used to determine the changes in quantity demanded of one commodity…

Q: Joon's Marshallian demand function for good X and Y is I given by: X* Suppose that Px=3, a = 0.8, ß…

A: Income Elasticity of demand measures the percentage change in the quantity demanded due to the…

Q: Calculate the cross-price elasticity Eg. Are the goods X and R substitutes or complements? Explain…

A: The cross-price elasticity of demand implies the sensitivity of the quantity demanded of a product…

Q: Identify the type of goods which have zero cross elasticity of demand. a. Normal goods b.…

A: The elasticity of demand measures the responsiveness of quantity demanded of a good to a change in…

Q: Suppose the cross-price elasticity of demand between raspberry jam and strawberry jam is 7.5. The…

A: Cross price elasticity of demand shows the responsiveness of a percentage change in price of one…

Q: The price elasticity of demand is a measure of the extent to which the quantity and all other…

A: Demand is the amount of a good that consumers are willing to purchase at a particular price. It is…

Q: If the cross-price elasticity of demand of two goods is negative, what are those two goods called?

A: Cross price elasticity of demand means the magnitude of change in the quantity demanded for a given…

Q: If the income elasticity for chocolate chip cookies is 1.84, then chocolate chip cookies are A. an…

A: Given data: Income elasticity for chocolate chip cookies is 1.84.

Q: a. Calculate the cross-price elasticity of demand for porridge oats and milk sold in a supermarket…

A: Given, The initial price of porridge oats: is $150 Final price of porridge oats: $210 Initial…

Q: If the income elasticity coefficient for fish tacos is 0.25, then fish tacos are: Select an answer…

A: This can be described as a concept that shows the graphical representation of the limit at which the…

Q: 35, You are told that the cross-price elasticity between goods X and Y is2.0. This means that a.…

A: Cross-elasticity of demand or Cross-price elasticity of demand can be defined as the ratio of the…

Q: Solve the Elasticities. Describe the significance of the values of the elasticities. 1. An increase…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: cross-price elasticity of demand of 1.2

A: Cross-price elasticity: Cross elasticity of demand refers to the percentage change in quantity…

Q: Using the table below: i. Calculate the cross-price elasticity of broccoli. ii. Are fish and…

A: To calculate the cross-price elasticity of broccoli with respect to fish, you can use the following…

Q: c. A 5% decrease in the price of good X increases his demand for good Y by 5%. Compute the…

A: Perfectly inelastic demand refers to the demand with remains the same irrespective of the change in…

Q: The accompanying table lists the cross-price elasticities of demand for several goods, where the…

A: Price elasticity determines the % change in the demanded quantity with respect to a unitary change…

Q: when the income elasticity of demand is greater than unity, the commodity is a. A non-related…

A: Income elasticity of demand shows how much the quantity demanded of a good changes when the income…

Q: An economist estimated the cross-price elasticity for peanut butter and jelly to be 1.5 . Based on…

A: Given Cross price elasticity for peanut butter and jelly is 1.5

Q: 5) Price of product X increases by 20%. Qd for product Y decreases by 60%. 6) Price of product X…

A: 5) Cross price elasticity of demand between two goods is the responsiveness of change in demand for…

Q: When price of tea in local cafe rises from birr 10 to 15 per cup, demand for coffee rises from 3000…

A: Cross elasticity of demand shows the relationship between price of one commodity and demand of…

Q: When a good has an income elasticity of demand coefficient of 4.54 the _____. A. good is a normal…

A: Ans. Income elasticity of demand shows the responsiveness of change in quantity demanded of a good…

Q: B) When the price of Good A is $27, the quantity demanded of Good B is 1,200 units. When the price…

A: Note: Since you have posted a question with multiple sub-parts, I will do only first three parts.…

Q: 35. You are told that the cross-price elasticity between goods X and Y is +2,0. This means that a.…

A: The cross price elasticity of demand is the concept that measures how the demand for a good responds…

Q: If the cross-price elasticity of demand for good A when the price of B changes is negative that…

A: A negative cross-price elasticity of demand indicates that good A and good B have an inverse…

Q: a. Calculate the cross-price elasticity of demand for porridge oats and milk sold in a supermarket…

A: Here, given information is: Initial price of porridge oats: $150 Final price of porridge oats: $210…

Q: u are told that the cross-price elasticity between goods X and Y is2.0. This means that a. Goods X…

A: Cross-elasticity of demand or Cross-price elasticity of demand can be defined as the ratio of the…

Question

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.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?
(Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of demand measures, for a given price, the __________ in quantity demanded divided by the __________ income from which it resulted. b. If a decrease in the price of one good causes a decrease in demand for another good, the two goods are __________. c. If the value of the cross-price elasticity of demand between two goods is approximately zero, they are considered __________.
Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate your price elasticity of demand as the price of pizza increases from 8 to 10 if (i) your income is 20,000 and (ii) your income is 24,000. b. Calculate your income elasticity of demand as your income increases from 20,000 to 24,000 if (i) the price is 12 and (ii) the price is 16.
Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
Isabella always spends $50 on red roses each month and simply adjusts the quantity she purchases as the price changes. What can you say about Isabella's elasticity of demand for roses?
What does a price elasticity of demand of 0.39 mean?
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.
If the cross-price elasticity of demand of two goods is negative, what are those two goods called? A. substitutes B. inferior goods C. complements D. normal goods
35. 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. Goods X and Y are substitute goods.
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.
a. Calculate the cross-price elasticity of demand for porridge oats and milk sold in a supermarket if at the end of last period, the price of the porridge oats rose from $150 to $210 and the demand for milk sold, moved from 200 units sold to 180 units. State whether you think these two goods are complements or substitutes.
d. Calculate the cross-price elasticity Eg. Are the goods X and R substitutes or complements? Explain how a 5 percent decrease in the price of related good R would affect demand for X, all other factors affecting the demand for X remaining the same.