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:

Hive Mind

A collective consciousness or shared intelligence emerging from the collaboration or collective efforts of a group of individuals, often likened to the behavior of bees in a hive.

Mechanization

The process of introducing machines or automated equipment into manufacturing, agriculture, or other sectors to increase efficiency and production.

Rationalization

The process of replacing traditional and emotional thought with reason and practicality, often in reference to work processes or societal norms.

Moral Society

A community or society that abides by a set of moral principles or standards governing the behavior of its members.