3 If a product has many substitutes, which of the following statements is correct? Select one: a.It is likely that its cross price elasticity is close to -3. b. It is likely that it is a normal good. c. It is likely that its supply elasticity is low. d. It is likely that its price elasticity of demand is very low. e. None of the above.

3 If a product has many substitutes, which of the following statements is correct? Select one: a.It is likely that its cross price elasticity is close to -3. b. It is likely that it is a normal good. c. It is likely that its supply elasticity is low. d. It is likely that its price elasticity of demand is very low. e. None of the above.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 8QFR

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Similar questions

Using the following equation for the demand for a good or service, calculate the price elasticity of demand (using the point form), cross-price elasticity with good x and income elasticity. Q=82P+0.10I+Px Q is quantity demanded, P is the product price. P1 is the price of a related good, and I is income. Assume that P= $10, I = 100, and Px = 20.
Prove that price elasticity of demand is not the same as the slope of a demand curve.
Estimates presented in Exhibit 5 show that Android users have a higher price elasticity of demand for apps in the Google Play Store than do iPhone users in the Apple App Store. Why might Android users tend to be more sensitive to app prices than iPhone users? What categories or types of apps (for example, games/social media) do you think have the highest price elasticities?
A life-saving medicine without any close substitutes will tend to have a. a small elasticity of demand. b. a large elasticity of demand. c. a small elasticity of supply. d. a large elasticity of supply.
(Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of demand measures, for a given price, the __________ in quantity demanded divided by the __________ income from which it resulted. b. If a decrease in the price of one good causes a decrease in demand for another good, the two goods are __________. c. If the value of the cross-price elasticity of demand between two goods is approximately zero, they are considered __________.