Author Question: If tea and coffee are substitutes, the cross elasticity of coffee with respect to the price of tea ... (Read 111 times)

809779 · **on:** Jun 29, 2018

If tea and coffee are substitutes, the cross elasticity of coffee with respect to the price of tea will be ________ and an increase in the price of tea will ________ the demand for coffee.

A) positive; increase
B) negative; decrease
C) negative; increase
D) positive; decrease

Question 2

The table above shows Mary's utility from chips and soda. The table shows that Mary has diminishing marginal utility for

A) both chips and soda.
B) neither chips nor soda.
C) soda, but not chips.
D) chips, but not soda.