Suppose the price elasticity of demand for Good A is 2.4 and the price elasticity of demand for Good B is 1.2. Which of the following statements is consistent with these values?
A. Good A is a luxury and Good B is a necessity.
B. Good A is a good several days after a price increase while Good B is that same good several years after the price increase.
C. Good A is ice cream and Good B is mint chocolate chip ice cream.
D. Good A is salt and Good B is college tuition.
Answer: A
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When event B follows event A three times in succession, but people say B following A is "just a coincidence," they usually mean
A) it is highly improbable B will follow A a fourth time. B) it is more common for A to follow B. C) B following A is only a subjective opinion. D) there has not been sufficient observation to connect B positively with A. E) they aren't aware of any causal theory linking B to A.
Externalities occur when a transaction directly impacts all the people involved in the transaction
a. True b. False Indicate whether the statement is true or false