A Rise in the Price of Good a Shifts the

question 14

Multiple Choice

A rise in the price of good A shifts the

• A)demand curve for good B rightward if the cross elasticity of demand for good B with respect to the price of A is negative.
• B)demand curve for good B rightward if the cross elasticity of demand for good B with respect to the price of A is positive.
• C)supply curve of B rightward if the cross elasticity of demand for good B with respect to the price of A is negative.
• D)supply curve of B rightward if the cross elasticity of demand for good B with respect to the price of A is positive.
• E)demand curve for B rightward if the income elasticity of demand for B is positive.

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Definitions:

Consumer Goods

Products bought and used by consumers rather than by manufacturers for producing other goods.

Capital Goods

Long-term assets used in the production of goods and services, such as machinery, buildings, and equipment.

Consumer Goods

Products that are bought for consumption by the average consumer.

Capital Goods

Long-lasting goods acquired by businesses to create goods and services, as opposed to being directly consumed by consumers.