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orchidbee10Lv1
29 Sep 2019
When the price of good A rises from $180 to $220, the quantity of good A demanded decreases from 250 to 150 units a day, and the quantity of good C demanded increases from 75 to 125 units a day.
From this information, we can determine that _______.
A. the cross elasticity of demand is positive, so the two goods are substitutes
B. the goods are complements because as the price of good A changes so does the quantity demanded of good C
C. good C is a normal good because as the price of good A rises, people switch to good C
D. the cross elasticity of demand is less than 1, so the two goods are substitutes
When the price of good A rises from $180 to $220, the quantity of good A demanded decreases from 250 to 150 units a day, and the quantity of good C demanded increases from 75 to 125 units a day.
From this information, we can determine that _______.
A. the cross elasticity of demand is positive, so the two goods are substitutes
B. the goods are complements because as the price of good A changes so does the quantity demanded of good C
C. good C is a normal good because as the price of good A rises, people switch to good C
D. the cross elasticity of demand is less than 1, so the two goods are substitutes
5 Mar 2023
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Joshua StredderLv10
29 Sep 2019
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