Question : 131) If two goods, X and Y, have a positive : 1384167

 

131) If two goods, X and Y, have a positive cross elasticity of demand, then we know that they

A) are both normal goods.

B) are complements.

C) are both inferior goods.

D) each have a price elasticity greater than one.

E) are substitutes.

132) Suppose the cross elasticity of demand between two goods, X and Y, is negative. If the price of X decreases, the quantity demanded will

A) rise for both goods.

B) fall for both goods.

C) rise for X and fall for Y.

D) fall for X and rise for Y.

E) not change.

133) Suppose the cross elasticity of demand for two goods, X and Y, is positive. If the price of Y falls, then quantity demanded will

A) rise for both goods.

B) fall for both goods.

C) rise for X and fall for Y.

D) fall for X and rise for Y.

E) remain the same for both goods.

134) If pizza and beer are complementary goods, we can conclude that

A) the income elasticity of demand is positive.

B) their cross-elasticity of demand is positive.

C) both goods are inferior goods.

D) the income elasticity of demand is negative.

E) their cross-elasticity of demand is negative.

135) For which of the following pairs of products would we expect the cross elasticity of demand to be negative?

A) printers and toner cartridges

B) iPhones and BlackBerry smartphones

C) butter and margarine

D) LCD TVs and plasma TVs

E) acetaminophen and ibuprofen

136) During the 1970s, OPEC’s output restrictions caused gasoline prices to increase sharply. Coincidentally, demand for gas-guzzling cars fell. A likely explanation for these observations is that gasoline and cars had a ________ elasticity of demand that was ________.

A) cross; negative

B) cross; positive

C) income; negative

D) income; positive

E) price; negative

137) The price of apples at a local market rises from $2.95 to $3.05 per kilogram, and as a result the quantity of oranges that households purchase increases from 3950 to 4050 kilograms per week. The cross-price elasticity is

A) -1.33.

B) -0.75.

C) 0.75.

D) 1.33.

E) 1.5.

138) Suppose the cross-elasticity of demand for two goods, domestic cheese and imported cheese, is positive. If the price of imported cheese falls, then quantity demanded will

A) rise for both domestic and imported cheese.

B) fall for both domestic and imported cheese.

C) rise for domestic cheese and fall for imported cheese.

D) fall for domestic cheese and rise for imported cheese.

E) There is not enough information to answer this question.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

139) Refer to Table 4-5. The cross-price elasticity of demand for transit passes in terms of the price of gasoline is ________. We can therefore conclude that these two goods are ________.

A) 0.5; substitutes

B) 0.2; substitutes

C) 5.0; complements

D) 0.2; complements

E) 0.33; substitutes

140) Refer to Table 4-5. The cross-price elasticity of demand for transit passes in terms of the price of gasoline is ________.  A rise in the price of gasoline causes the demand curve for transit passes to shift to the ________.

A) 5.0; right

B) 0.33; right

C) 0.33; left

D) 0.2; right

E) 0.2; left