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 ?

Related Mcqs:

1. 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

2. 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

3. The price of apples falls by 5% and quantity demanded increases by 6% This means that demand is ?

   A. zero elastic
   B. elastic
   C. perfectly elastic
   D. inelastic

4. Instead, assume that global economic expansion causes the quantity of tin demanded to increase by 4 million pounds at each price To maintain price of tin at the target price you would ?

   A. sell 4 million pounds of tin
   B. sell 8 million pounds of tin
   C. buy 4 million pounds of tin
   D. buy 8 million pounds of tin

5. An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ?

   A. +2
   B. +0.5
   C. -2
   D. -0.5

6. The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ____________?

   A. elastic
   B. perfectly elastic
   C. unitarily elastic
   D. inelastic.

7. The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is ?

   A. elastic
   B. perfectly elastic
   C. unitarily elastic
   D. inelastic.

8. If a price increase of good A increases the quantity demanded of good B, then good B is a________________?

   A. substitute good
   B. complementary good
   C. bargain
   D. inferior good

9. If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ?

   A. income inelastic
   B. price inelastic
   C. price elastic
   D. unit price elastic

10. If the cross-price elasticity of demand between two goods is negative, then the two goods are ?

    A. normal goods
    B. unrelated goods
    C. Substitutes.
    D. Complements