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If the Cross-Elasticity of Demand for Bacon with Respect to Price

Question 45

Multiple Choice

If the cross-elasticity of demand for bacon with respect to price of beefsteak is positive, then:


A) an increase in the price of beefsteak will shift the demand curve for bacon outward.
B) a decrease in the price of beefsteak will shift the demand curve for beefsteak outward.
C) an increase in the price of bacon will shift the demand curve for beefsteak inward.
D) a decrease in the price of bacon will shift the demand curve for beefsteak outward.

Correct Answer:

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