Author Question: Donuts and coffee are complements. When the price of a donut increases, the demand for coffee ... (Read 59 times)

azncindy619 · **on:** Jun 29, 2018

Donuts and coffee are complements. When the price of a donut increases, the demand for coffee ________ and the cross elasticity of demand for coffee with respect to the price of a donut is ________.

A) decreases; negative
B) increases; negative
C) increases; positive
D) decreases; positive

Question 2

As the price of gasoline increases, fewer people buy cars that are gas guzzlers. A graph showing this relationship would have

A) a negative slope.
B) a positive relationship.
C) a direct relationship.
D) a horizontal line.