Multiple Choice
If the cross elasticity of demand between peanut butter and jelly is negative,then
A) a rise in the price of peanut butter results in a rise in the equilibrium price of jelly.
B) a rise in the price of peanut butter results in a fall in the equilibrium price of jelly.
C) a rise in the price of peanut butter has no effect on the equilibrium price of jelly.
D) a fall in the price of peanut butter results in a fall in the equilibrium price of jelly.
E) peanut butter and jelly are substitutes.
Correct Answer:
Verified
Correct Answer:
Verified
Q56: The demand for orange juice is price
Q57: For which one of the following will
Q58: A good has a price elasticity of
Q59: When price rises from $1.50 to $2.50
Q60: When the price of peanut butter rises
Q62: Supply is elastic if<br>A)a small percentage change
Q63: Suppose a university decides to raise tuition
Q64: Suppose the quantity of gasoline is measured
Q65: If an increase in the supply of
Q66: A sudden,end-of-summer heat wave increases the demand