We would expect the cross elasticity of demand between dress shirts and ties to be:
A. positive, indicating normal goods.
B. positive, indicating complementary goods.
C. negative, indicating substitute goods.
D. negative, indicating complementary goods.
Answer: D
Economics
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Economics
In a competitive market where the elasticity of the market demand curve is -0.5, there are 100 identical firms, and the elasticity of the supply curve to the other 99 firms is 4. What is the elasticity of the demand curve of the 100th firm?
A) -446 B) -489 C) -50 D) -0.5
Economics