Author Question: Suppose the cross-elasticity of demand for two goods, domestic cheese and imported cheese, is ... (Read 61 times)

mustachegiraffe · **on:** Oct 12, 2022

Question 1

The price of apples at a local market rises from $2.95 to $3.05 per kilogram, and as a result the quantity of oranges that households purchase increases from 3950 to 4050 kilograms per week. The cross-price elasticity is
◦ 0.75.
◦ 1.5.
◦ -1.33.
◦ 1.33.
◦ -0.75.

Question 2

Suppose the cross-elasticity of demand for two goods, domestic cheese and imported cheese, is positive. If the price of imported cheese falls, then quantity demanded will
◦ rise for both domestic and imported cheese.
◦ fall for domestic cheese and rise for imported cheese.
◦ fall for both domestic and imported cheese.
◦ rise for domestic cheese and fall for imported cheese.
◦ There is not enough information to answer this question.

jbsuccess1 · **Reply #1 on:** Oct 12, 2022

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