Question
The price of good A went from $2 to $2.50 and the quantity of good B went from 50 units to 40 units. If you
The price of good A went from $2 to $2.50 and the quantity of good B went from 50 units to 40 units. If you use arc elasticity, cross-price elasticity is _____ and goods A and B are _____.
a.
-1; complements.
b.
-1; substitutes.
c.
+1; complements.
d.
+1; substitutes.
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Global Business Today
Authors: Charles Hill
9th Edition
1259299201, 9781259299209
