If Two Goods Are Substitutes, the Cross-Price Elasticity of Demand

question 67

Multiple Choice

If two goods are substitutes, the cross-price elasticity of demand must be:

• A) negative.
• B) positive.
• C) zero.
• D) infinite.

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Definitions:

Verifiable Work

Tasks or projects that can be substantiated or confirmed, often relevant in contexts where proof of performance or achievement is required.

Deliverables

Refers to the tangible or intangible outcomes that a project or part of a project is expected to produce as an agreed-upon deliverable to a customer or project sponsor.

Scenario Planning

A strategic planning method used to create and analyze different future scenarios to aid decision-making under uncertainty.

Contingency Planning

The process of preparing for unexpected events by developing strategies to mitigate their potential impact on operations.