Search & Filtering
If salaries of journalist go up then demand curve of newspaper will shift upward.
truth or false with explanation
Part A (6 MARKS)
Using an appropriate formula, calculate this Consumer’s cross Elasticity of demand for Good A. Show your working.
Part B (4 MARKS)
Is Good A, a substitute for, or a complement to, Good B? Explain your reasoning.
a) If value of cross price elasticity is positive then it means there are less close substitutes are available of that product.
b) In case of luxury products, the own price elasticity of demand is greater than one.
c) If salaries of journalist go up then demand curve of newspaper will shift upward.
d) When price elasticity of supply is greater than one it means supply curve is flatter.
There is a market of computer i.e. there is some demand and supply of computer. Shown in a diagram the effect on the demand and supply curve, the equilibrium price and the equilibrium quantity if “THE SALARIES OF ELECTRONIC TECHNICIAN GO UP”. (Explain also in words).
State whether the Statement is TRUE or FALSE. Also write the reason (Without reason your answer will not accepted)
a) If value of cross price elasticity is positive then it means there are less close substitutes are available of that product.
b) In case of luxury products, the own price elasticity of demand is greater than one.
c) If salaries of journalist go up then demand curve of newspaper will shift upward.
d) When price elasticity of supply is greater than one it means supply curve is flatter.
Part a
Using an appropriate formula, calculate this Consumer’s cross Elasticity of demand for Good A. Show your working.
Part b
Is Good A, a substitute for, or a complement to, Good B? Explain your reasoning.
