The cross-price elasticity of demand between pancakes and waffles is positive. This indicates all of the following except one. Which is the exception?
a. Pancakes and waffles are substitutes.
b. An increase in the price of pancakes will shift the demand curve for waffles to the right.
c. An increase in the price of waffles will shift the demand curve for pancakes to the right.
d. A decrease in the supply of waffles will shift the demand curve for pancakes to the right.
e. Pancake demand and waffle demand are price elastic.
E
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In the graph below, a decrease in the price of good Y will result in:
A. A decrease in demand for good Y
B. An increase in demand for good Y
C. An increase in demand for good X
D. A decrease in demand for good X
For the law of diminishing returns to be present, we must have:
A. at least one factor of production to be fixed. B. output decreasing as more laborers are hired. C. the price of labor increasing as more workers are hired. D. simultaneous changes in labor and capital.