What is the cross price elasticity?.
The price for good A and B start o Show more The graphs show the demand for two goods by a single individual. The price for good A and B start out at $20 and the individuals demand is D2 on both graphs. Then the price of good A rises to $70. Use the endpoint method for all elasticity calculations. Question11 Not yet answered Marked out of 5.00 Flag question Question text Suppose the change in the price of good A from $20 to $70 causes the individuals demand for good B to shift from D2 to D3. What is the cross price elasticity? Answer: Question12 Not yet answered Marked out of 5.00 Flag question Question text Suppose the change in the price of good A from $20 to $70 causes the individuals demand for good B to shift from D2 to D3. Choose all that are correct a. None of the answers are correct. b. Good A and B are complements because the percentage change in the price of good A is greater than the percentage change in quantity demanded of Good B. c. Good A and B are complements. d. Good A and B are substititutes because when the price of A goes up the quantity demanded of B goes down even though the price of Good B hasnt changed. e. Good A and B are substitutes because when the price of A goes up the quantity demanded of B goes up even though the price of Good B hasnt changed. f. Good A and B are complements because when the price of A goes up the quantity demanded of B goes down even though the price of Good B hasnt changed. g. Good A and B are substitutes. h. Good A and B are substitutes because the percentage change in the price of good A is greater than the percentage change in quantity demanded of Good B. i. Good A and B are complements because when the price of A goes up the quantity demanded of B goes up even though the price of Good B hasnt changed. Question13 Not yet answered Marked out of 5.00 Flag question Question text Suppose the change in the price of good A from $20 to $70 causes the individuals demand for good B to shift from D2 to D1. What is the cross price elasticity? Answer: Question14 Not yet answered Marked out of 5.00 Flag question Question text Suppose the change in the price of good A from $20 to $70 causes the individuals demand for good B to shift from D2 to D1. Choose all that are correct a. Good A and B are substitutes because when the price of A goes up the quantity demanded of B goes up even though the price of Good B hasnt changed. b. Good A and B are complements. c. None of the answers are correct. d. Good A and B are complements because when the price of A goes up the quantity demanded of B goes up even though the price of Good B hasnt changed. e. Good A and B are complements because the percentage change in the price of good A is greater than the percentage change in quantity demanded of Good B. f. Good A and B are substitutes. g. Good A and B are complements because when the price of A goes up the quantity demanded of B goes down even though the price of Good B hasnt changed. h. Good A and B are substitutes because the percentage change in the price of good A is greater than the percentage change in quantity demanded of Good B. i. Good A and B are substititutes because when the price of A goes up the quantity demanded of B goes down even though the price of Good B hasnt changed. Show less
What is the cross price elasticity?
