If the cross-price elasticity of demand between Good A and Good B is 3,the price of Good B increases,and the price elasticity of demand for Good B is inelastic,we can expect to see a ________ change in the quantity demanded for Good A.
A) positive,zero
B) positive,small
C) negative,infinite
D) negative,one-for-one
E) positive,large

Question

Quizplus · Accepted Answer

The cross-price elasticity of demand between Good A and Good B is 3, which means that a 1% increase in the price of Good B will lead to a 3% decrease in the quantity demanded for Good A. Since the price elasticity of demand for Good B is inelastic, the quantity demanded for Good B will not change much in response to a change in its price. Therefore, we can expect to see a small positive change in the quantity demanded for Good A.

If the Cross-Price Elasticity of Demand Between Good a and Good