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

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

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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
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?

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

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

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

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

Option 1

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