If the crow price elasticity of demand of two good* is positive, we can conclude
ID: 469259 • Letter: I
Question
If the crow price elasticity of demand of two good* is positive, we can conclude that the two goods are Normal goods Inferior goods. Substitutes Complements Suppose a gardener produces both green beans and com in her garden. If she must give up14busheb of corn to get 5 bushels of green beans, then her opportunity cost of 1 bushel of green beans is 0.36 bushel of corn. 2.8 bushels of com. 14 bushels of com. 70 bushels of com. Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sand) can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 chair is 1/5 table for Mike and 1/3 table for Sandy. 1/5 table for Mike and 3 tables for Sandy. 5 tables for Mike and 1/3 table for Sandy. 5 tables for make and 3 tables for Sandy Mike and Sandy arc two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 table is 1/5 chair for Mike and 13 chair for Sandy 1/5 chair for Mike and 3 chairs for Sandy. 5 chairs for Mike and 1/3 chair for Sandy. 5 chairs for Mike and 3 chairs for Sandy.Explanation / Answer
35) C) Substitutes
Substitute goods have a positive cross price elasticity. As the price of one product is increase, the demand of substitute product increases.
36) B) 2.8 bushels of corn
Opportunity cost of 1 bushel of green beans = (14 / 5 ) bushels of corn
37) A) 1/5 table for mike and 1/3 table for Sandy
For Mike, 4 tables = 20 chairs , => 1 chair = 4/20 = 1/5 tables
For Sandy, 3 tables = 18 chairs . => 1 chair = 3/18 = 1/3 tables
38) D) 5 chairs for Mike and 3 chairs for Sandy
For Mike, 20 chairs = 4 tables , => 1 table = 20/4 = 5 chairs
For Sandy, 18 chairs = 3 tables . => 1 table = 18/3 = 3 chairs
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