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Use the following chart regarding elasticities to answer the question that follows. Elasticity Value Price elasticity of demand for cupcakes -2.50...

Use the following chart regarding elasticities to answer the question that follows.

Elasticity 

Value 

 Price elasticity of demand for cupcakes

 -2.50

 Price elasticity of supply for cupcakes

1.50 

 Income elasticity of demand for cupcakes

1.50 

 Cross-price elasticity of demand between cupcakes and brownies

0.25 

 Cross-price elasticity of demand between cupcakes and juice

-0.45 


Which of the following is true?

Cupcakes are a normal good, a substitute of brownies and a complement for juice.

Cupcakes are a normal good, a complement of brownies and a substitute for juice.

Cupcakes are an inferior good, a complement of brownies and a substitute for juice.

Cupcakes are an inferior good, a substitute of brownies and a complement for juice.

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Cupcakes are a normal good, a... View the full answer

1 comment
  • Read more on each elasticity measure. All the best in your studies
    • DrKakilo
    • May 04, 2018 at 10:32am

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