Suppose that average incomes increased from $30,000 to $34,000, and the quantity demanded of a product increased from 45 to 55.

What type of product must this be?

Select one:

a.

Substitute product.

b.

Inferior product.

c.

Luxury product.

d.

Necessity.

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Suppose that average incomes decreased from $38,000 to $36,000, and the quantity demanded of a product increased from 45 to 55.

What is the value of the income elasticity of demand?

Select one:

a.

-0.27

b.

-3.7

c.

-1.0

d.

+0.27

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Suppose that average incomes decreased from $38,000 to $36,000, and the quantity demanded of a product decreased from 55 to 45.

What type of product must this be?

Select one:

a.

Substitute product.

b.

Inferior product.

c.

Luxury product.

d.

Necessity.

Clear my choice

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What is the significance of a positive cross-elasticity coefficientbetween products X and Y?

Select one:

a.

The demand for both products must be elastic.

b.

The demand for both products must be inelastic.

c.

Products X and Y must be substitutes.

d.

Products X and Y must be complements.

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How is the cross-elasticity of demand calculated?

Select one:

a.

Bydividing the change in the quantity demanded of product Abythe change in the price of product B.

b.

Bydividing the percentage change in the quantity demanded of product Abythe percentage change in the price of product B.

c.

Bydividing the change in the price of product Abythe change in the quantity demanded of product B.

d.

Bydividing the percentage change in the price of product Abythe percentage change in the quantity demanded of product B.