Multiple Choice
What does it tell you if the cross price elasticity of demand between two products is +2?
A) The products are substitutes and a price increase in one by 3% decreases demand for the other by 1.5%.
B) The products are complements and a price increase in one by 3% decreases demand for the other by 1.5%.
C) The products are complements and a price increase in one by 3% decreases demand for the other by 6%.
D) The products are substitutes and a price increase in one by 3% increases demand for the other by 6%.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: What does a demand curve show?<br>A) What
Q3: When might a demand curve for a
Q4: If the demand for a product increases
Q5: A shift in the demand curve may
Q6: What can cause a change in quantity
Q8: What does it tell you if the
Q9: What does it tell you if demand
Q10: Demand measures the quantity customers are willing
Q11: An increase in costs mean the demand
Q12: An increase in demand is shown by