Question: Elasticity of demands Suppose that a 15 percent decrease in the price of normal good A causes a 12 percent increase in the quantity demanded

Elasticity of demands

Elasticity of demands Suppose that a 15 percent decrease in the price

Suppose that a 15 percent decrease in the price of normal good A causes a 12 percent increase in the quantity demanded of normal good B. The coefficient of cross elasticity of demand is: Select one: A. positive and therefore these goods are substitutes. O B. negative and therefore these goods are substitutes. O C. negative and therefore these goods are complements. O D. positive and therefore these goods are complements. Next page Week 7 Feedback

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