Decrease in the quantity demanded of good

Assignment Help Business Economics

Reference no: EM131006477

Suppose that a 5 percent decrease in the price of good X causes a 2 percent decrease in the quantity demanded of good Y. The cross-price elasticity of demand is therefore:

negative and the goods are substitutes

negative and the goods are complements

positive and the goods are substitutes

positive and the goods are complements

Reference no: EM131006477

Questions Cloud

What is the most you would pay today for a promise to repay : What is the most you would pay today for a promise to repay you $3400 at the end of 5 years if your opportunity cost is 13%?

Consumer sensitivity to changes in price : Just as consumer sensitivity to changes in price and in the determinants of demand (DOD) may be measured through demand elasticities, producer sensitivity to changes in price and in the determinants of supply (DOS) may be measured through supply elas..

How might that change attitudes toward the fracking process : In the U.S., landowners have the mineral rights to all minerals that might be found under their property (e.g, oil and natural gas). In most European countries, the government, not the property owner, has the rights to any minerals found in the groun..

Do you consider this form of technology to be beneficial : Do you consider this form of technology to be beneficial to patients? Is this something that you would consider as a patient or even recommend for a loved one

Decrease in the quantity demanded of good : Suppose that a 5 percent decrease in the price of good X causes a 2 percent decrease in the quantity demanded of good Y. The cross-price elasticity of demand is therefore:

Imposing trade restrictions on imported tires : Suppose there is a policy debate regarding the United States’ imposing trade restrictions on imported tires: A political pundit explains that it is necessary to impose trade restrictions, such as a tariff, on the tire industry to protect workers in t..

What is winstrol and how does it affect : What is winstrol and how does it affect you once you stop using it

In an intertemporal l decision-making context : In an intertemporal l decision-making context, the real interest rate is considered as the price of today’s consumption relative to future consumption. The empirical fact that the labor supply curve is upward sloping suggests that the substitution ef..

Discuss any recent advancements or improvements : Choose an alternative profession that you believe should be considered as mainstream. Discuss any recent advancements or improvements over the years that would qualify the profession

User Account

All Pages