If its value of cross-price elasticity is negative, a good must be a necessity.

If its value of cross-price elasticity is negative, a good must be a necessity.
 a. True
  b. False

QUESTION 2

Cross-price elasticity measures the responsiveness of the price of good A to a change in the price of good B.
 a. True
  b. False

QUESTION 3

When the cross-price elasticity of demand between two products is positive, the two goods are said to be substitutes.
 a. True
  b. False

QUESTION 4

The demand for most agricultural products tend to be price inelastic.
 a. True
  b. False

QUESTION 5

The demand for most agricultural products tends to be
 a. both price and income elastic
  b. both price and income inelastic
  c. price inelastic and income elastic
  d. price elastic and income inelastic
  e. unit elastic in terms of price elasticity and income elastic

QUESTION 6

When agricultural production increases, the total amount paid for agricultural products tends to
 a. increase because demand is price elastic
  b. decrease because demand is price elastic
  c. increase because demand is price inelastic
  d. decrease because demand is price inelastic
  e. remain constant because demand is price inelastic

QUESTION 7

Based on what you know about the determinants of price elasticiyt, the demands for agricultural products, like, wheat, soybeans, milk, and eggs tend to be
 a. price inelastic
  b. price elastic
  c. price inelastic only in the long run
  d. price elastic only in the short run
  e. price elastic only in the long run