Economists are sketching examples of demand or supply curve

Reference no: EM13688048

1. A 10 % increase in the price of soda leads to a 20 % increase in the quantity of iced tea demanded. It appears that:

a. elasticity of demand for soda 0.5 and is inelastic.

b. elasticity of demand for iced tea is 2 and is elastic.

c. cross-price elasticity of demand for soda is -0.5.

d. cross-price elasticity of demand for iced tea is -2.

2. When economists are sketching examples of a demand or supply curve that is close to horizontal, they refer to that demand or supply curve as ____________.

a. elastic

b. inelastic

c. price inelasticity

d. having zero elasticity

Reference no: EM13688048

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