Topic: Other Important Elasticities Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-6 19) The cross-price elasticity of demand between good X and good Y is 0.5. Given this information, which of the following statements is true? A) The demand for goods X and Y is inelastic. B) Goods X and Y are substitutes. C) Goods X and Y are complements. D) The demand for goods X and Y is income inelastic. Answer: B Diff: 2 Topic: Other Important Elasticities Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-6 Refer to the information provided in Figure 5.5 below to answer the question that follows. Figure 5.5 20) Refer to Figure 5.5. As the price of good W increased, the demand for good Y shifted from to The cross-price elasticity of demand between W and Y is D1 D2. A) positive. B) negative. C) zero. D) indeterminate from this information. Answer: A Diff: 2 Topic: Other Important Elasticities Skill: Analytical AACSB: Analytic Skills Learning Outcome: 21) In output markets, the elasticity of supply tends to be A) negative. B) zero. C) positive. D) decreasing at an increasing rate. Answer: C Diff: 1
Topic: Other Important Elasticities Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-6 19) The cross-price elasticity of demand between good X and good Y is 0.5. Given this information, which of the following statements is true? A) The demand for goods X and Y is inelastic. B) Goods X and Y are substitutes. C) Goods X and Y are complements. D) The demand for goods X and Y is income inelastic. Answer: B Diff: 2 Topic: Other Important Elasticities Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-6 Refer to the information provided in Figure 5.5 below to answer the question that follows. Figure 5.5 20) Refer to Figure 5.5. As the price of good W increased, the demand for good Y shifted from D1 to D2. The cross-price elasticity of demand between W and Y is A) positive. B) negative. C) zero. D) indeterminate from this information. Answer: A Diff: 2 Topic: Other Important Elasticities Skill: Analytical AACSB: Analytic Skills Learning Outcome: 21) In output markets, the elasticity of supply tends to be A) negative. B) zero. C) positive. D) decreasing at an increasing rate. Answer: C Diff: 1
ch5_elasticity.docx