Multiple Choice
If there is an increase in the price of broccoli because of disastrous weather that destroys about half of this year's spinach crop, which of the following could be TRUE?
A) The cross elasticity of demand between spinach and broccoli is negative 1.25.
B) The demand curve for broccoli has shifted rightward and the cross elasticity of demand between spinach and broccoli is positive.
C) The demand curve for spinach has shifted to the leftward and the cross elasticity of demand between spinach and broccoli is positive.
D) The demand curves for spinach and broccoli have become more cross inelastic.
Correct Answer:
Verified
Correct Answer:
Verified
Q304: Of the following, demand is likely to
Q305: If the elasticity of supply is 4,
Q306: If goods A and B are complements,
Q307: Last year in the United States, the
Q308: The price elasticity of demand for meat
Q310: If your demand for a good is
Q311: If a 5 percent increase in the
Q312: If the demand curve for a good
Q313: By reviewing its sales records, Dell economists
Q314: The worst drought in over 50 years