lorena considers coffee and tea to be substitutes. therefore, the cross elasticity, also known as cross price elasticity, of demand between coffee and tea for lorena must be:
A positive cross elasticity of demand means that the two goods are substitutes.
What is elasticity of demand?
Demand elasticity, often known as the elasticity of demand, gauges how consumers react to changes in price or income. Due to the fact that the price of a good or service is the most typical economic component used to measure it, it is frequently referred to as price elasticity of demand.
Therefore,
lorena considers coffee and tea to be substitutes. therefore, the cross elasticity, also known as cross price elasticity, of demand between coffee and tea for lorena must be:
A positive cross elasticity of demand means that the two goods are substitutes.
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Buying several different investment alternatives to spread the risk helps an investor achieve diversification. The correct option among all the options that are given in the question is the last option or option "D". By diversifying the investment, a person can earn less, but will never loose all his investments in one shot.
Answer:
False, when interests rates are low, spending increases because more people are willing to spend more money to make big purchases on items such as cars or homes.
Answer:
The answer is C.
Explanation:
Accrued interest on a bond is the interest on the bond that has accumulated on the principal.
The buyer(issuer) of a bond pays both the principal and interest to the bondholder or the investor at maturity.
The interest being paid is the difference between the principal and the total amount paid at maturity.