Question

15) If the cross-price elasticity of demand between two goods is positive, we can assume that the two goods in question are:

A) complements.

B) substitutes.

C) inferior goods.

D) totally unrelated to one another.

Answer:

16) Which of the following approaches to understanding and predicting consumer behavior depends primarily on the knowledge and experience of a firm's employees and its suppliers?

A) Direct consumer surveys.

B) Expert opinion.

C) Analysis of historical data.

D) Test marketing and price experiments.

Answer:

17) Data collected on a sample of individuals with different characteristics at a specific point in time are called:

A) cross-section data.

B) time series data.

C) panel data.

D) none of the above.

Answer:

Answer 1

Q15.
Answer is B. Substitutes
Explanation:
Here cross elasticity is positive in the sense that the price of one goods will increase the demand for substitute goods.
Q16.
Answer is C. Analysis of Historical data
Explanation:
Analysis of historical data helps the business houses to have conclusions based on past experiences.
Q17.
Answer is A. Cross section data.
Explanation:
Cross section data is a study of data of different individuals at a certain point of time