Suppose the Cross-Price Elasticity of Demand Between Quinces and Muskmelons

question 28

Multiple Choice

Suppose the cross-price elasticity of demand between quinces and muskmelons is 5.Which of the following must be true?

• A)Quinces are normal goods.
• B)Muskmelons are normal goods.
• C)If the price of quinces rises by $5, the demand for muskmelons will increase by 1.
• D)If the price of muskmelons rises by $5, the demand for quinces will increase by 1.
• E)Quinces and muskmelons are substitutes.

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