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Suppose the Cross-Price Elasticity of Demand for Butter and Margarine

question 39

Multiple Choice

Suppose the cross-price elasticity of demand for butter and margarine is equal to 0.96 but the cross-price elasticity for water and lemons is -0.13.This means that butter and margarine are _____,while water and lemons are _____.


Definitions:

Credits Account

A financial record that boosts a liability or equity account, or lowers an asset or expense account.

Drawee

The party in a bill of exchange who is directed to pay the specified amount, typically a bank.

Co-signer

An individual who signs a loan or credit application with another person, promising to pay the debt if the primary borrower does not.

Drawer

In financial transactions, the person who writes or the entity issuing a bill of exchange, cheque, or draft.

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