Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6.This means that________.
A) a 1 per cent decrease in the price of grapefruit juice leads to a 6 per cent increase in orange juice consumption.
B) a 6 per cent increase in the price of grapefruit juice leads to a 1 per cent increase in orange juice consumption.
C) if the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased.
D) the demand for orange juice is 6 times more than the demand for grapefruit juice.
Correct Answer:
Verified
Q130: For people who live near a bus
Q131: How is cross-price elasticity of demand calculated?
A)As
Q144: If the price elasticity of demand is
Q145: When Audrina raised the price of her
Q161: Suppose that at a price of $55,
Q165: Economists estimated that the price elasticity of
Q170: If the cross-price elasticity of demand for
Q172: Consider the following pairs of items:
a.
Q173: Studies show that the income elasticity of
Q177: If you expect the economy is going
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents