Suppose Target Decided to Lower the Price on All Shirts

question 407

Multiple Choice

Suppose Target decided to lower the price on all shirts as part of its Back to School promotion. The cross elasticity of demand between pants and shirts is negative. Lowering the price on shirts will ________ the demand for pants because shirts and pants are ________.

• A) increase; substitutes
• B) decrease; substitutes
• C) increase; complements
• D) decrease; complements

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Definitions:

Real Science

Disciplines that are based on empirical evidence and the scientific method, aimed at acquiring knowledge through research, observation, and experimentation.

Random Sample

A sample that gives everyone in the population an equal chance of being selected.

Surveyed

The collection of data or opinions from a group of people, usually through questionnaires or interviews, for research purposes.

Research Question

A concise, well-defined statement or query that outlines the problem or area of investigation within a research project.