The price of apples at a local market rises from $2.95 to $3.05 per kilogram, and as a result the quantity of oranges that households purchase increases from 3,950 to 4,050 kilograms per week. The cross-price elasticity is O A. 0.75. OB. 1.33. OC. 1.5 OD. -0.75. OE. 1.33. ←

The price of apples at a local market rises from $2.95 to $3.05 per kilogram, and as a result the quantity of oranges that households purchase increases from 3,950 to 4,050 kilograms per week. The cross-price elasticity is O A. 0.75. OB. 1.33. OC. 1.5 OD. -0.75. OE. 1.33. ←

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 17P

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Question

The price of apples at a local market rises from $2.95 to $3.05 per kilogram, and as a result the quantity of oranges that households purchase increases from
3,950 to 4,050 kilograms per week. The cross-price elasticity is
O A. 0.75.
OB. 1.33.
OC. 1.5.
O D. -0.75.
OE. 1.33.
←

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