If There Is an Increase in the Price of Broccoli

question 358

Multiple Choice

If there is an increase in the price of broccoli because of disastrous weather that destroys about half of this year's spinach crop, which of the following could be true?

• A) The cross elasticity of demand between spinach and broccoli is negative 1.25.
• B) The demand curve for broccoli has shifted rightward and the cross elasticity of demand between spinach and broccoli is positive.
• C) The demand curve for spinach has shifted to the leftward and the cross elasticity of demand between spinach and broccoli is positive.
• D) The demand curves for spinach and broccoli have become more cross inelastic.

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