An economist estimated the cross-price elasticity for peanut butter and jelly to be -1.5. Based on this information, we know the goods are a. inferior goods. b. complements. c. inelastic. d. substitutes.

An economist estimated the cross-price elasticity for peanut butter and jelly to be -1.5. Based on this information, we know the goods are a. inferior goods. b. complements. c. inelastic. d. substitutes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

An economist estimated the cross-price elasticity for peanut butter and jelly to be -1.5. Based on this information, we know the goods are

inferior goods.

complements.

inelastic.

substitutes.

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