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November 19, 2022

If the cross-price elasticity of demand between chocolates and icecreams is 0.5, then are chocolates and icecreams substitutes or complements?

If the cross-price elasticity of demand between chocolates and icecreams is 0.5, then are chocolates and icecreams substitutes or complements? Explain.

Question 2.

] Examine whether the following statement is true or false. Explain. The income elasticity of demand is positive for a normal good.

Question 3.

Examine whether each of the following statements is true or false. Explain.

a. Average variable cost rises as output rises if marginal cost exceeds average total cost.

b. Average total cost falls as output rises if marginal cost is less than average variable cost.

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