When the price of erasers increases from $1.50 to $2.50,the quantity demanded of pencils is unchanged.The cross-price elasticity of demand between erasers and pencils is ________ because erasers and pencils are ________.
A) 1; substitutes
B) 1/2; complements
C) 0; normal goods
D) 0; unrelated
E) -1/2; complements

Question

Quizplus · Accepted Answer

The fact that the price increase of erasers did not affect the quantity demanded of pencils suggests that the two goods are unrelated, and thus the cross-price elasticity of demand is zero.

When the Price of Erasers Increases from $1