Question 5 The price of input X decreases by 15%. In response, the quantity of input Y demanded increases by 6%. We would conclude: O that X and Y are substitute inputs and the cross-elasticity of factor demand is equal to 2.50 O that X and Y are complementary inputs and the cross-elasticity of factor demand is equal to -2.50 O that X and Y are substitute inputs and the cross-elasticity of factor demand is equal to 0.40 O that X and Y are complementary inputs and that the cross-elasticity of factor demand is equal to -0.40

Question 5 The price of input X decreases by 15%. In response, the quantity of input Y demanded increases by 6%. We would conclude: O that X and Y are substitute inputs and the cross-elasticity of factor demand is equal to 2.50 O that X and Y are complementary inputs and the cross-elasticity of factor demand is equal to -2.50 O that X and Y are substitute inputs and the cross-elasticity of factor demand is equal to 0.40 O that X and Y are complementary inputs and that the cross-elasticity of factor demand is equal to -0.40

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 15CTQ: Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the...

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