If goods are complements, definitely their
Cross elasticities are positive
Cross elasticities are negative
Income elasticities are negative
Price elasticities are negative
Demand is perfectly inelastic when
Shift is the supply curve results is no change in price
The good in question has perfect substitutes
Shift of the supply curve results in no change in quantity demanded
Shift is the supply curve results is change in price
Ed =
Income
Unit elastic demand
Means that the ratio of change in the quantity demanded to a change in the price equals 1
Means that the ratio of a percentage change in the quantity demanded to a percentage change in the price equals 1
will be vertical
will be horizontal
Demand will be more elastic
The higher the income
The lower the price
The shorter the passage of time after a permanent price increase
The more substitutes available for the goods
_______ is a measure of the responsiveness of demand for one good to a change in the price of another good and involves demand curve shifts.
Cross Price elasticity of demand
Price elasticity of demand
Unit elasticity of demand
Price elasticity of supply
The cross elasticity of demand measures the responsiveness of the quantity demanded of a particular good to changes in the prices of
Its substitute and its complements
Its substitute but not its complements
Its complements but not its substitutes
Its complements but not its giffen goods
