If the Cross-Price Elasticity of Demand Between Good a and Good

question 98

Multiple Choice

If the cross-price elasticity of demand between Good A and Good B is 2,the price of Good B increases,and the price elasticity of demand for Good B is elastic,we can expect to see a ________ change in the quantity demanded for Good A.

• A) positive,zero
• B) positive,small
• C) negative,infinite
• D) negative,one-for-one
• E) negative,large

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Definitions:

Linear Demand

A type of demand where there is a constant relationship between the quantity demanded and price, represented by a straight line on a graph.

Price Inelastic

A situation in which the demand for a good does not change significantly in response to a change in price, indicating that consumers are less sensitive to price changes.

Linear

A term used to describe something that forms a straight line or a process that proceeds in steps of equal increments.

Downward-Sloping

A term often used to describe a curve or line on a graph that decreases from left to right, indicating a negative relationship between two variables.