ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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supply curve of good B rightward if the cross elasticity of demand between A and B is positive.
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demand curve for good B rightward if the cross elasticity of demand between A and B is negative.
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demand curve for good B rightward if the cross elasticity of demand between A and B is positive.
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supply curve of good B rightward if the cross elasticity of demand between A and B is negative.
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Detailed explanation-1: -demand curve for good B rightward if the cross elasticity of demand between A and B is positive .
Detailed explanation-2: -A demand curve represents the relationship between the price of a good or service and the quantity demanded for a given period of time. Typically, as the price rises, the demand falls; as a result, the curve slopes down from left to right.
Detailed explanation-3: -A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve.
Detailed explanation-4: -Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices.
Detailed explanation-5: -The demand curve shifts when the quantity of a product or service demanded at each price level changes. If the quantity demanded at each price level increases, the demand curve shifts rightward. Inversely, if the quantity demanded at each price level decreases, the demand curve will shift leftward.