Solved

When the Price of Good X Increases by 20 Percent

Question 122

Multiple Choice

When the price of good X increases by 20 percent, the quantity demanded of good Y increases by 40 percent. The cross-price elasticity of demand is equal to _____, and these goods are:


A) 0.5; complements.
B) 2; complements.
C) -0.5; substitutes.
D) 2; substitutes.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions