Author Question: If the cross-price elasticity of demand between two goods is positive, then a. consumers are being ... (Read 169 times)

sabina · **on:** Jul 1, 2018

If the cross-price elasticity of demand between two goods is positive, then
a. consumers are being irrational
b. supply is elastic
c. the goods may have similar uses
d. the goods may go well together in consumption
e. one good must be a necessity

Question 2

If an increase in the price of peanut butter causes a decline in the demand for jelly, then
a. the goods are substitutes
b. jelly is an inferior good
c. the goods are complements
d. both goods are inelastic
e. peanut butter is an inferior good