Author Question: If price of product A increases by 10, and the quantity demanded for product B drops by 50, then the ... (Read 28 times)

penza · **on:** Jul 1, 2018

If price of product A increases by 10, and the quantity demanded for product B drops by 50, then the cross price elasticity of the quantity of product A with respect to price of product B is

A) 5.
B) -5.
C) 0.2.
D) -0.2.

Question 2

Consumers who put a high value on a service

A) are better off with perfect price discrimination.
B) are better off under a single-price monopoly.
C) are indifferent between perfect price discrimination and a single-price monopoly.
D) incur deadweight loss under either single-price monopoly or perfect price discrimination.