The cross elasticity between two goods has been measured at ?1.2. How are the goods related? Explain. Give an example of goods for which this might be a reasonable measure of cross elasticity.
What will be an ideal response?
The goods are complements. An increase in the use of one decreases the use of both. A decrease in the price of one increases the quantity demanded of one and the demand for the other. Examples include hamburgers and buns, cameras and film, cars and gasoline, and so on.
Economics
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During the antebellum period, factories grew, in part, due to internal economies of scale
Indicate whether the statement is true or false
Economics
Which of the following will occur as the price of a good decreases?
A) The demand curve for that good will shift to the left. B) The demand curve for that good will shift to the right. C) The quantity demanded for that good will increase. D) Demand for that good will increase.
Economics