Multiple Choice
A 10 percent increase in the price of root beer causes a 5 percent increase in the quantity demanded of orange soda.This means that
A) root beer and orange soda are substitutes
B) root beer and orange soda are complements
C) the cross-price elasticity of demand is elastic
D) the cross-price elasticity of demand is equal to 2
E) the cross-price elasticity of demand is equal to -2
Correct Answer:
Verified
Correct Answer:
Verified
Q40: Cross-price elasticity measures the responsiveness of the
Q41: Suppose consumers spent $42 million on Christmas
Q42: As consumers have a longer time period
Q43: Demand is more elastic<br>A)in the short run
Q44: If city officials expect that an increase
Q46: Elasticity is always<br>A)measured in dollars<br>B)measured in dollars
Q47: If income rises and the demand for
Q49: Computers and software programs are<br>A)inferior goods<br>B)complementary goods<br>C)goods
Q50: Some demand curves have constant elasticity everywhere.
Q158: Which of the following describes a situation