Question : If the quantity of good A required increases as the price of good B rises, then A) A and B are substitutes. B) A and B are complements.
Option 1: Only A correct
Option 2: Only B correct
Option 3: Both are correct
Option 4: None of the above.
Correct Answer: Only A correct
Solution : The demand for good A will rise as the price of item B rises if the cross elasticity of demand is positive. This indicates that products A and B are substitute goods. Hence option a is the correct answer.
Question : The cross-price elasticity of demand is used to determine whether:- a: Product is an inferior or normal good b: A product is a necessity or a luxury c: Two products are substitutes or complements
Question : The law of demand states that:
Question : Elasticity is quantified by A: Geometrical Method B: Arithmetical Method
Question : Assertion: When the price of a good decrease, its quantity demanded increases. Reason: The law of demand states an inverse relationship between price and quantity demanded.
Question : The following are the primary causes of poverty in India: A: Population Pressure B: Inadequate capital formation and infrastructure
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