If a 10 percent decrease in the price of product A brings about a 3 percent increase in the sales of product B, then:
a. products A and B are complementary.
b. the cross elasticity of demand between these two products is positive.
c. products A and B are substitutes.
d. the demand for these products is inelastic.
e. the total revenue earned from product A will decrease.
a
Economics
You might also like to view...
Total costs increase from $1500 to $1800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. AC rise by $1.50 b. AC rise by $1.00 c. AC fall by $1.50 d. AC fall by $1.00
Economics
The value of the accumulated assets of an individual is called
a. the Lorenz coefficient b. the Gini coefficient c. income d. wealth e. quintiles
Economics