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Nicole
Nicole asked in Social ScienceEconomics · 5 months ago

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If a 10 percent increase in the price of good X results in a 20 percent increase in the quantity of good Y demanded, which of the following is true?

Good X and good Y are complementary goods, and the cross-price elasticity is −0.5. bGood X and good Y are normal goods, and the income elasticity is +2. cGood X and good Y are substitute goods, and the income elasticity is +2. dGood X and good Y are complementary goods, and the cross-price elasticity is −2. eGood X and good Y are substitute goods, and the cross-price elasticity is −2.

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  • JuanB
    Lv 7
    5 months ago

    e  Good X and good Y are substitute goods, and the cross-price elasticity is −2

    If the price of butter goes up and people buy more margarine you have substitutes.

    Only  cross-price elasticity uses data from 2 products.  Income elasticity needs data on change of income.

  • Oiy
    Lv 7
    5 months ago

    Substitute, the cross price elasticity is +2. I‘m so sure, but I don‘t know anything about the income elasticity.

  • JJ
    Lv 7
    5 months ago

    42 is the answer to the Ultimate Question of Life, the Universe, and Everything.

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