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Suppose a Consumer Only Consumes Goods X and Y, and Suppose

Question 24

Multiple Choice

Suppose a consumer only consumes goods x and y, and suppose that x is a normal good while y is an inferior good.Which of the following is might be true?


A) The cross-price elasticity of demand for x is positive.
B) The cross-price elasticity of demand for x is negative.
C) The own-price elasticity of demand for y is positive.
D) The own-price elasticity of demand for y is negative.
E) Both (a) and (c) .
F) Both (b) and (d) .
G) All of the above.
H) None of the above.

Correct Answer:

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