If a 10 Percent Decrease in the Price of Product

question 10

Multiple Choice

If a 10 percent decrease in the price of product A brings about a 3 percent increase in the sales of product B, then:

• A) products A and B are complementary.
• B) the cross elasticity of demand between these two products is positive.
• C) products A and B are substitutes.
• D) the demand for these products is inelastic.
• E) the total revenue earned from product A will decrease.

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The total amount of precipitation, including rain, snow, sleet, or hail, that falls in a given area over a year.

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