Question 1

If your purchases of shoes decrease from 11 pairs per year to 9 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered:
A.inferior goods.
B.luxury goods.
C.substitute goods.
D.complementary goods.

Accepted Answer

The answer of If your purchases of shoes decrease from...

Question 2

Since the price of walnuts increases as the demand for cashews increases, we can assume that these two goods are:
A.unrelated goods.
B.superior goods.
C.inferior goods.
D.substitute goods.

Accepted Answer

The answer of Since the price of walnuts increases as...

Question 3

Goods are ________ when the cross-price elasticity of demand is positive and ________
when the cross-price elasticity of demand is negative.
A.substitutes; complements
B.complements; substitutes
C.elastic; inelastic
D.inelastic; elastic

Accepted Answer

When the cross-price elasticity of demand is positive, it means that an increase in the price of one good leads to an increase in the demand for the other good. Such goods are called substitutes. On the other hand, when the cross-price elasticity of demand is negative, it means that an increase in the price of one good leads to a decrease in the demand for the other good. Such goods are called complements. Therefore, the correct answer is (A) substitutes; complements.

Question 4

Which of the following pairs of goods are most likely to have a cross-price elasticity of demand that is greater than zero?
A.shoes and shoelaces
B.apples and bananas
C.pizza and bread
D.sticks gasoline and cars

Accepted Answer

The answer of Which of the following pairs of goods...

Question 5

The percentage change in quantity demanded of one good or service divided by the percentage change in the price of a related good or service is the:
A.price elasticity of demand.
B.quantity elasticity of
C.demand.
D.income elasticity of demand.
E.cross-price elasticity of demand.

Accepted Answer

The answer of The percentage change in quantity demanded of...

Question 6

If the income elasticity of demand for a good is positive, the good is said to be:
A.an inferior good.
B.a substitute good.
C.a normal good.
D.a positive good.

Accepted Answer

The answer of If the income elasticity of demand for...

Question 7

The cross-price elasticity of demand of substitute goods is:
A.between -1 and 0.
B.less than 0.
C.equal to 0.
D.greater than 0.

Accepted Answer

The answer of The cross-price elasticity of demand of substitute...

Question 8

Raina consumes 100% more mechanical pencils when the price of felt-tip pens increases by 50%.For Raina, pencils and pens are , and the cross-price elasticity of demand is
________.
A.complements; 1/2
B.substitutes; -1/2
C.complements; 2
D.substitutes; 2

Accepted Answer

The answer of Raina consumes 100% more mechanical pencils when...

Question 9

The pair of items that is most likely to have a negative cross-price elasticity of demand is:
A.cashews and peanuts.
B.hamburgers and ketchup.
C.coffee and tea.
D.mustard and aspirin.

Accepted Answer

The answer of The pair of items that is most...

Question 10

We note that the price of pretzels increases and the demand for tortilla chips decreases, so we can assume that these two goods are:
A.unrelated goods.
B.inferior goods.
C.complementary goods.
D.substitute goods.

Accepted Answer

The answer of We note that the price of pretzels...

Question 11

The cross-price elasticity of demand for Coke with respect to the price of Pepsi has been estimated to be 0.61.If the price of Pepsi falls by 10% in a period, how will that affect the demand for Coke in that period, all other things unchanged?
A.The demand for Coke will decrease but by less than 6.1%.
B.The demand for Coke will decrease by 6.1%.
C.The demand for Coke will not change because many people prefer Coke to Pepsi.
D.The demand for Coke will rise.

Accepted Answer

The answer of The cross-price elasticity of demand for Coke...

Question 12

If two goods are substitutes, their cross-price elasticity of demand should be:

Accepted Answer

Substitute goods have a positive cross-price elasticity of demand, meaning that if the price of one good increases, the demand for the other good will increase as well. Therefore, the cross-price elasticity of demand should be greater than 0. When two goods are substitutes, an increase in the price of one good will lead to an increase in the demand for the other good. Therefore, the cross-price elasticity of demand will be greater than 0.

Question 13

If you know the cross-price elasticity between two goods is positive, then you know the two goods are:
A.substitutes.
B.complements.
C.normal goods.
D.inferior goods.

Accepted Answer

The answer of If you know the cross-price elasticity between...

Question 14

If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered:
A.inferior goods.
B.luxury goods.
C.substitute goods.
D.complementary goods.

Accepted Answer

The answer of If your purchases of shoes increase from...

Question 15

Suppose that the cross-price elasticity of demand for Mountain Dew with respect to the price of Coke is 0.7.This implies that the two goods are:
A.substitutes.
B.complements.
C.inferior.
D.normal.

Accepted Answer

A positive cross-price elasticity of demand indicates that the two goods are substitutes, meaning that an increase in the price of one good leads to an increase in demand for the other good. In this case, an increase in the price of Coke will lead to an increase in demand for Mountain Dew, indicating that they are substitutes.

Question 16

If two goods are complementary, we can assume that the cross-price elasticity of demand for these goods is:
A.between 0 and 1.
B.equal to 0.
C.greater than 1.
D.less than 0.

Accepted Answer

The answer of If two goods are complementary, we can...

Question 17

If your purchases of shoes remain constant at 9 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered:
A.inferior goods.
B.unrelated goods.
C.substitute goods.
D.complementary goods.

Accepted Answer

The answer of If your purchases of shoes remain constant...

Question 18

The pair of items that is likely to have the highest cross-price elasticity of demand is:
A.baseball and baseball glove.
B.spaghetti and meatballs.
C.coffee and tea.
D.peanut butter and jelly.

Accepted Answer

The answer of The pair of items that is likely...

Question 19

If two goods are complements, their cross-price elasticity of demand should be:
A.less than 0.
B.equal to 0.
C.positive yet almost equal to 0.
D.greater than 0.

Accepted Answer

The answer of If two goods are complements, their cross-price...

Question 20

The percent change in quantity demanded divided by the percent change in income, all other things unchanged, is:
A.price elasticity of demand.
B.quantity elasticity of demand.
C.income elasticity of demand.
D.cross-price elasticity of demand.

Accepted Answer

The answer of The percent change in quantity demanded divided...

Quiz 6: Elasticity

If your purchases of shoes decrease from 11 pairs per year to 9 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered: A.inferior goods. B.luxury goods. C.substitute goods. D.complementary goods.

Since the price of walnuts increases as the demand for cashews increases, we can assume that these two goods are: A.unrelated goods. B.superior goods. C.inferior goods. D.substitute goods.

Goods are when the cross-price elasticity of demand is positive and when the cross-price elasticity of demand is negative. A.substitutes; complements B.complements; substitutes C.elastic; inelastic D.inelastic; elastic

Which of the following pairs of goods are most likely to have a cross-price elasticity of demand that is greater than zero? A.shoes and shoelaces B.apples and bananas C.pizza and bread D.sticks gasoline and cars

The percentage change in quantity demanded of one good or service divided by the percentage change in the price of a related good or service is the: A.price elasticity of demand. B.quantity elasticity of C.demand. D.income elasticity of demand. E.cross-price elasticity of demand.

If the income elasticity of demand for a good is positive, the good is said to be: A.an inferior good. B.a substitute good. C.a normal good. D.a positive good.

The cross-price elasticity of demand of substitute goods is: A.between -1 and 0. B.less than 0. C.equal to 0. D.greater than 0.

Raina consumes 100% more mechanical pencils when the price of felt-tip pens increases by 50%.For Raina, pencils and pens are , and the cross-price elasticity of demand is ________. A.complements; 1/2 B.substitutes; -1/2 C.complements; 2 D.substitutes; 2

The pair of items that is most likely to have a negative cross-price elasticity of demand is: A.cashews and peanuts. B.hamburgers and ketchup. C.coffee and tea. D.mustard and aspirin.

We note that the price of pretzels increases and the demand for tortilla chips decreases, so we can assume that these two goods are: A.unrelated goods. B.inferior goods. C.complementary goods. D.substitute goods.

If two goods are substitutes, their cross-price elasticity of demand should be:

If you know the cross-price elasticity between two goods is positive, then you know the two goods are: A.substitutes. B.complements. C.normal goods. D.inferior goods.

If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered: A.inferior goods. B.luxury goods. C.substitute goods. D.complementary goods.

Suppose that the cross-price elasticity of demand for Mountain Dew with respect to the price of Coke is 0.7.This implies that the two goods are: A.substitutes. B.complements. C.inferior. D.normal.

If two goods are complementary, we can assume that the cross-price elasticity of demand for these goods is: A.between 0 and 1. B.equal to 0. C.greater than 1. D.less than 0.

If your purchases of shoes remain constant at 9 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered: A.inferior goods. B.unrelated goods. C.substitute goods. D.complementary goods.

The pair of items that is likely to have the highest cross-price elasticity of demand is: A.baseball and baseball glove. B.spaghetti and meatballs. C.coffee and tea. D.peanut butter and jelly.

If two goods are complements, their cross-price elasticity of demand should be: A.less than 0. B.equal to 0. C.positive yet almost equal to 0. D.greater than 0.

The percent change in quantity demanded divided by the percent change in income, all other things unchanged, is: A.price elasticity of demand. B.quantity elasticity of demand. C.income elasticity of demand. D.cross-price elasticity of demand.

Quiz 6: Elasticity

If your purchases of shoes decrease from 11 pairs per year to 9 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered: A.inferior goods. B.luxury goods. C.substitute goods. D.complementary goods.

Since the price of walnuts increases as the demand for cashews increases, we can assume that these two goods are: A.unrelated goods. B.superior goods. C.inferior goods. D.substitute goods.

Goods are ________ when the cross-price elasticity of demand is positive and ________ when the cross-price elasticity of demand is negative. A.substitutes; complements B.complements; substitutes C.elastic; inelastic D.inelastic; elastic

Which of the following pairs of goods are most likely to have a cross-price elasticity of demand that is greater than zero? A.shoes and shoelaces B.apples and bananas C.pizza and bread D.sticks gasoline and cars

The percentage change in quantity demanded of one good or service divided by the percentage change in the price of a related good or service is the: A.price elasticity of demand. B.quantity elasticity of C.demand. D.income elasticity of demand. E.cross-price elasticity of demand.

If the income elasticity of demand for a good is positive, the good is said to be: A.an inferior good. B.a substitute good. C.a normal good. D.a positive good.

The cross-price elasticity of demand of substitute goods is: A.between -1 and 0. B.less than 0. C.equal to 0. D.greater than 0.

Raina consumes 100% more mechanical pencils when the price of felt-tip pens increases by 50%.For Raina, pencils and pens are , and the cross-price elasticity of demand is ________. A.complements; 1/2 B.substitutes; -1/2 C.complements; 2 D.substitutes; 2

The pair of items that is most likely to have a negative cross-price elasticity of demand is: A.cashews and peanuts. B.hamburgers and ketchup. C.coffee and tea. D.mustard and aspirin.

We note that the price of pretzels increases and the demand for tortilla chips decreases, so we can assume that these two goods are: A.unrelated goods. B.inferior goods. C.complementary goods. D.substitute goods.

If two goods are substitutes, their cross-price elasticity of demand should be:

If you know the cross-price elasticity between two goods is positive, then you know the two goods are: A.substitutes. B.complements. C.normal goods. D.inferior goods.

If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered: A.inferior goods. B.luxury goods. C.substitute goods. D.complementary goods.

Suppose that the cross-price elasticity of demand for Mountain Dew with respect to the price of Coke is 0.7.This implies that the two goods are: A.substitutes. B.complements. C.inferior. D.normal.

If two goods are complementary, we can assume that the cross-price elasticity of demand for these goods is: A.between 0 and 1. B.equal to 0. C.greater than 1. D.less than 0.

If your purchases of shoes remain constant at 9 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered: A.inferior goods. B.unrelated goods. C.substitute goods. D.complementary goods.

The pair of items that is likely to have the highest cross-price elasticity of demand is: A.baseball and baseball glove. B.spaghetti and meatballs. C.coffee and tea. D.peanut butter and jelly.

If two goods are complements, their cross-price elasticity of demand should be: A.less than 0. B.equal to 0. C.positive yet almost equal to 0. D.greater than 0.

The percent change in quantity demanded divided by the percent change in income, all other things unchanged, is: A.price elasticity of demand. B.quantity elasticity of demand. C.income elasticity of demand. D.cross-price elasticity of demand.

Goods are when the cross-price elasticity of demand is positive and when the cross-price elasticity of demand is negative. A.substitutes; complements B.complements; substitutes C.elastic; inelastic D.inelastic; elastic