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Maddy Purchases 2 Pounds of Beans and 3 Pounds of Rice

Question 180

Multiple Choice

Maddy purchases 2 pounds of beans and 3 pounds of rice per month when the price of beans is $2 per pound.She purchases 1 pounds of beans and 4 pounds of rice per month when the price of beans is $3 per pound.Maddy's cross-price elasticity of demand for beans and rice is


A) 0.71,and they are substitutes.
B) -0.71,and they are complements.
C) 1.4,and they are substitutes.
D) -1.4,and they are complements.

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