A. normal goods
B. unrelated goods
C. Substitutes.
D. Complements
Related Mcqs:
- If the cross-price elasticity between two goods is negative the two goods are likely to be ?
A. substitutes
B. complements
C. necessities
D. luxuries - Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?
A. 1.4
B. 0.66
C. 0.75
D. 2.0 - If the quantity demanded of beef increases by 5% when the price of chicken increase by 20% the cross-price elasticity of demand between beef and chicken is ?
A. -4
B. 0.25
C. 4
D. -0.25 - Positive cross elasticities suggest that goods are ____ and negative cross-elasticities that goods are ?
A. substitutes inferior
B. normal, complements
C. substitutes complements
D. normal, inferior - The price elasticity of demand is a negative number this means ?
A. Demand is price elastic
B. Demand is price inelastic
C. The demand curve is downward sloping
D. An increase in income will reduce the quantity demanded - If demand is linear (a straight line) then price elasticity of demand is ?
A. elastic in the upper portion and inelastic in the lower portion
B. inelastic in the upper portion and elastic in the lower portion
C. inelastic throughout
D. constant along the demand curve - If the price elasticity of demand is unit then a fall in price ?
A. Reduces revenue
B. Leaves revenue unchanged
C. Increase revenue
D. Reduces costs - Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?
A. 550 units
B. 500 units
C. 450 units
D. 490 units - If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?
A. The higher price in market A
B. The higher price in market B
C. The same Price in both markets
D. Cannot tell which price will be higher - If the cross elasticity of demand is -2 ?
A. The products are substitutes and demand is cross price elastic
B. The products are substitutes and demand is cross price inelastic
C. The products are complements and demand is cross price elastic
D. The products are complements and demand is cross price inelastic
