1. If the demand for product A displays high and postitive cross-price elasticit

Question

1. If the demand for product A displays high and postitive cross-price elasticity with respect to the price of product B, then: a. the demand for product A is likely to have a low price elasticity b. product A and B are subtitutes c. products A and B are complements d. the demand for product B is likely to have a low price elasticity 2. Fast food is believed to be an inferior good. This means that: a. the quantity of fast food consumed decreases as income increases b. the income elasticity of demand for fast food is positive c. The quantity of fast food consumed will always be high d. fast food is really not quality food 1. If the demand for product A displays high and postitive cross-price elasticity with respect to the price of product B, then: a. the demand for product A is likely to have a low price elasticity b. product A and B are subtitutes c. products A and B are complements d. the demand for product B is likely to have a low price elasticity 2. Fast food is believed to be an inferior good. This means that: a. the quantity of fast food consumed decreases as income increases b. the income elasticity of demand for fast food is positive c. The quantity of fast food consumed will always be high d. fast food is really not quality food a. the demand for product A is likely to have a low price elasticity b. product A and B are subtitutes c. products A and B are complements d. the demand for product B is likely to have a low price elasticity 2. Fast food is believed to be an inferior good. This means that: a. the quantity of fast food consumed decreases as income increases b. the income elasticity of demand for fast food is positive c. The quantity of fast food consumed will always be high d. fast food is really not quality food

Explanation / Answer

1. B is Correct Because income elasticity is positive for substitutes

2. A is Correct Beacuse income elacticity is negative for inferior goods

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.