QUESTION 17 5 points Save Answer When quantity changes due to a price change and

Question

QUESTION 17 5 points Save Answer When quantity changes due to a price change and calculated elasticity factor is 1.40 and in another example the cross-elasticity factor .65, the the first factor is an example of and the second is an example of products. Price Elasticity; Complement O Price Inelasticity: Substitute Price Elasticity; Substitute Price Inelasticity; Inferior QUESTION 18 5 points Save Answer If my income monthly income increases 30%, but my visits to the movie theater increase only 15%, this is an example of a good normal complement substitute O inferior

Explanation / Answer

Answer.)

Q17.) Price Elasticity ; Substitute

The price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price.

In case of complements, as the price of one good rises, the demand for the complement good decreases. A positive cross-price elasticity value indicates that the two goods are substitutes.

Q18.) Normal

If quantity demanded of a good increases with an increases income then the good is a normal good.

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