Assume that a consumer spends all her income on two goods, A and B, and when the price of A falls the amount of B consumed does not change. What can be said about (a) price elasticity of demand for A,...

Assume that a consumer spends all her income on two goods, A and B, and when the price of A falls the amount of B consumed does not change. What can be said about (a) price elasticity of demand for A, (b) price elasticity of demand for B, (c) income elasticity of demand for A, (d) income elasticity of demand for B and (e) cross elasticity of demand between A and B?



May 26, 2022
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