AP Microeconomics 2.5: Income and Cross-Price Elasticity
Use income and cross-price elasticity to classify goods and explain how income or the price of a related good changes demand.
- Syllabus
- Effective Fall 2025
- Course
- AP Microeconomics
MKT-3.E—a. Define measures of elasticity. b. Explain (using graphs where appropriate) measures of elasticity and the impact of a…—Topic 2.5 question 1
The table provided shows the marginal utility for Lucy when she consumes Good X and Good Y.
Suppose the price elasticity of demand for Good X is -2.0, the price elasticity of demand
for Good Y is -0.8, and the cross-price elasticity of demand between Good X and Good Y is
+1.6. Are goods X and Y complementary goods, substitute goods, normal goods, or inferior
goods? Explain.
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