Suppose that a 10 percent increase in the price of normal good Y causes a 5 percent decrease in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is Multiple Choice negative, and therefore these goods are substitutes. positive, and therefore these goods are substitutes. negative, and therefore these goods are complements. positive, and therefore these goods are complements..

Here, it is given that when there is an increase in price of good Y by 10 percent, there will be a…

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Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 13E: Using the following equation for the demand for a good or service, calculate the price elasticity of...

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Suppose that a 10 percent increase in the price of normal good Y causes a 5 percent decrease in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is

Multiple Choice

negative, and therefore these goods are substitutes.
positive, and therefore these goods are substitutes.
negative, and therefore these goods are complements.
positive, and therefore these goods are complements..

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