Author Question: Both income elasticity of demand and cross-price elasticity of demand coefficients can take on ... (Read 418 times)

JGIBBSON · **on:** Jul 1, 2018

Both income elasticity of demand and cross-price elasticity of demand coefficients can take on negative, zero, or positive values.
a. True
b. False

Question 2

The most important determinant of price elasticity of supply is
a. price elasticity of demand
b. technological conditions such as how rapidly costs increase when a firm increases its output
c. whether the production process relies heavily on capital or on labor
d. the number and closeness of available substitutes
e. whether the product is a normal good or an inferior good