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A 1 Percent Increase in the Price of Good W

Question 55

Multiple Choice

A 1 percent increase in the price of good W results in a 3 percent increase in the quantity demanded of good T. What is the cross-price elasticity of demand, and what kinds of goods are they?


A) 3; complements
B) A 1 percent increase in the price of good W results in a 3 percent increase in the quantity demanded of good T. What is the cross-price elasticity of demand, and what kinds of goods are they? A) 3; complements B) ; normal goods C) 3; substitutes D) ; inferior goods ; normal goods
C) 3; substitutes
D) A 1 percent increase in the price of good W results in a 3 percent increase in the quantity demanded of good T. What is the cross-price elasticity of demand, and what kinds of goods are they? A) 3; complements B) ; normal goods C) 3; substitutes D) ; inferior goods ; inferior goods

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