Answer:
The correct to the first fill in the blank is positive and answer to second fill in the blank is increase .
Explanation:
Cross price elasticity of demand can be defined as the measurement of change in quantity demanded one good that is in response to the change in price of another good.
Cross price elasticity of demand is said to be positive when the gods are substitute, which means that if there is an increase in price of one good than there will increase in demand of other good, same way if there is decrease in price of one good than there will be decrease in demand of other good.
Answer: Cross price elasticity is - 0.12
Explanation:
Cross price elasticity measures the responsiveness of quantity demanded of good a to a change in any of its related variable such as good b.
Given,
Pa=6, Pb=3, and M=30,
So, cross price elasticity is given by
Since, cross price elasticity is negative it means that good a and good b are complements to each other.
Who owns the factors of production
B. Households
As people have become more health-conscious and decided to eat food that is better for them the demand curve for oranges and apples has shifted to the right.
