42. The cross-price elasticity of demand for Coke and Pepsi is a. equal to zero

Question

42. The cross-price elasticity of demand for Coke and Pepsi is a. equal to zero b. larger than zero c. less than zero d. cannot be estimated 43. When incom e rises, the quantity demanded of movie tickets also rises. The income elasticity of demand for movie tickets is a. equal to zero b. larger than zero c. less than zero d. cannot be estimated When there is an increase in income, the percent change in the quantity demanded for food eaten away from home rises more than the percent change in income. Food eaten away from home 44. is a a. normal good b. inferior good c. complement of food eaten at home d. none of the above

Explanation / Answer

Ans:

42) Option D

cannot be estimated

Cross price elasticity of demand for substitutes goods is positive.However in this case it can not be estimated.

43) Option D

cannot be estimated

Income elasticity of demand measures the change in the quantity demanded of a good, for a change in the income. If quantity demanded rises when income rises, it is a normal good.

44) Option A

normal good

Income elasticity of demand measures the change in the quantity demanded of a good, for a change in the income. If quantity demanded rises when income rises, it is a normal good.

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