Author Question: If the cross-price elasticity of demand is -3, then a. the goods are substitutes b. one good is ... (Read 116 times)

mckennatimberlake · **on:** Jul 1, 2018

If the cross-price elasticity of demand is -3, then
a. the goods are substitutes
b. one good is price inelastic
c. one good is an inferior good
d. one good is a luxury good
e. the goods are complements

Question 2

Suppose the cross-price elasticity of demand between quinces and muskmelons is 5 . Which of the following must be true?
a. Quinces are normal goods.
b. Muskmelons are normal goods.
c. If the price of quinces rises by 5, the demand for muskmelons will increase by 1.
d. If the price of muskmelons rises by 5, the demand for quinces will increase by 1.
e. Quinces and muskmelons are substitutes.