Q 124

If the cross elasticity of demand between goods A and B is positive, then
A)the demands for A and B are both price elastic.
B)the demands for A and B are both price inelastic.
C)A and B are complements.
D)A and B are substitutes.
E)A and B are independent goods.

Q 125

If the cross elasticity of demand between goods A and B is negative, then
A)the demands for A and B are both price elastic.
B)the demands for A and B are both price inelastic.
C)A and B are complements.
D)A and B are substitutes.
E)A and B are independent goods.

Q 126

If the cross elasticity of demand between beef and bison is 1.5, then a 3 percent increase in the price of beef will lead to
A)a 4.5 percent increase in the quantity of bison demanded.
B)a 4.5 percent decrease in the quantity of bison demanded.
C)a 2 percent increase in the quantity of bison demanded.
D)a 2 percent decrease in the quantity of bison demanded.
E)a 0.5 percent increase in the quantity of bison demanded.