If a 20% rise in price of Whiskey leads to a 30% increase...
If a 20% rise in price of Whiskey leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is
3.0
2.5
2.3
1.5
Correct answer is D
It is calculated by taking the percentage change in the quantity demanded of one good and dividing it by the percentage change in the price of the other good.
Hence; 30/20 = 1.5
Which of the following set of statistical tools is used for further economic analysis? ...
The movement of curve I to ll suggests ...
PN equals average revenue or marginal revenue cure of ...
Which of the following factors is not a reason for farmer's unstable incomes? ...
Increasing national income without effective control of population size in a country can lead to ...
Citizens are protected from the government's arbitrariness in taxation by the canon of ...
An important contribution of small-scale industries to the Nigerian economy is in the area of ...
Which of the following will enhance productivity in an economy? ...