Suppose That a 10% Increase in the Price of Product

question 162

Multiple Choice

Suppose that a 10% increase in the price of product A results in a 12% decrease in the quantity demanded of product B. Which of the following statements is correct?

• A)The cross elasticity of demand coefficient between the two products is negative and the products are substitutes.
• B)The cross elasticity of demand coefficient between the two products is negative and the products are complements.
• C)The cross elasticity of demand coefficient between the two products is positive and the products are complements.
• D)The cross elasticity of demand coefficient between the two products is positive and the products are substitutes.

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Definitions:

Touchscreens

Input devices that allow users to interact with a computer or other devices by touching the screen directly with one or more fingers or a stylus.

Kilobyte

A unit of memory or data storage equal to 1,024 bytes.

Aspect Ratio

The width-to-height proportion of a monitor.

QWERTY Layout

A keyboard design for Latin-script alphabets, named for the first six keys on the top letter row of the keyboard, and widely used in computing.