Question

The cross-price elasticity of demand between goods X and Y

measures the responsiveness of the quantity of X demanded to changes in the price of Y. |
||

is the percentage change in the price of Y divided by the percentage change in the quantity of X demanded. |
||

is greater than zero if X and Y are substitutes. |
||

both a and c |
||

all of the above |

Answer #1

Ans. **c) Both a and c**

The cross-price elasticity of demand between goods X and Y measures the responsiveness of the quantity of X demanded to changes in the price of Y. In other words, it refers to that the percentage change in the quantity of good X demanded divided by the percentage change in the price of good Y. when price of good Y increases, the demand for good X increases and when price of good Y decreases, demand for good X decreases then both goods are substitute and cross-price elasticity between good X and good Y is greater than zero

The cross-price elasticity of demand measures the
absolute change in the quantity demanded of one good divided by
the absolute change in the price of another good.
percentage change in the price of one good divided by the
percentage change in the quantity demanded of another good.
percentage change in the quantity demanded of one good in one
location divided by the price of the same good in another
location.
percentage change in the quantity demanded of one good divided...

Q8. Cross-price elasticity of demand is calculated as
the
A) percentage change in quantity demanded divided by percentage
change in price of a good.
B) percentage change in quantity demanded of one good divided by
percentage change in price of a different good.
C) percentage change in quantity sold divided by percentage
change in buyers' incomes.
Q.9. If the cross-price elasticity of demand for
computers and software is negative, this means the two goods
are
A) substitutes. B) complements. C)...

Cross-price elasticity of demand is calculated as
the
total percentage change in quantity demanded divided by the total
percentage change in price.
percentage change in the price of good 1 divided by the percentage
change in the price of good 2.
percentage change in quantity demanded divided by the percentage
change in income.
percentage change in quantity demanded of good 1 divided by the
percentage change in the price of good 2.

What measures the responsiveness of quantity demanded to a
change in price?
a Total revenue
b Income elasticity
c Price elasticity of demand
d Equilibrium price.

The price elasticity of demand measures:
Select one:
a. the percentage change in quantity demanded of a good in
response to a one percentage change in
income
b. none of the above
c. the change in the number of units demanded of a good in
response to a one percentage change in
its price
d. the percentage change in quantity demanded of a good in
response to a one dollar change in its
price

The difference between price elasticity of demand and income
elasticity of demand is that
A. income elasticity of demand examines how an individual's
income changes when prices change and the price elasticity of
demand examines how quantity demand changes when price changes.
B. income elasticity measures the responsiveness of income to
changes in supply while price elasticity of demand measures the
responsiveness of demand to a change in price.
C. income elasticity refers to a horizontal shift of the demand...

The following table lists the cross elasticity of demand for
several goods, where the percentage quantity change is measured for
the first good of the pair, and the percentage price change is
measured for the second good.
Good Cross elasticity of demand
Air-conditioning units and kilowatts of electricity -0.34
Coke and Pepsi 0.63
High-fuel-consuming SUVs and gasoline -0.28
McDonald’s burgers and Harvey burgers 0.82
Butter and Margarine 1.54
1.Explain the sign of each of the cross elasticities. What does
it...

1) The income elasticity of demand for Good Z is –0.2, while the
cross-price elasticity of demand between Good Z and Good Y is 1.63.
Which of the following statements is correct regarding Good Z?
Group of answer choices
Good Z is a inferior good, and Goods Z and Y are
complements.
Good Z is an inferior good, and Goods Z and Y are
substitutes.
Good Z is a normal good, and Goods Z and Y are complements.
Good Z...

26. If the income elasticity of demand is -0.80 and the quantity
demanded increases by 10 percent as a result of a change in income,
income must be
a. increased by 8 percent
b. increased by 80 percent
c. decreased by 8 percent.
d. decreased by 12.5 percent.
27. When the demand is unitary
a. The marginal income is zero.
b. the percentage change in the amount is equal to the percentage
change in the price.
c. An increase in...

If goods X and Y are substitute goods, then the cross-price
elasticity of the price of good Y on the demand
for good X is:
Select one:
a. positive
b. zero
c. undefined
d. negative

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 12 minutes ago

asked 37 minutes ago

asked 38 minutes ago

asked 47 minutes ago

asked 47 minutes ago

asked 53 minutes ago

asked 53 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago