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

question 162

Multiple Choice

If two goods are substitutes,their cross-price elasticity of demand is:

• A)less than 0.
• B)greater than 0.
• C)equal to 0.
• D)impossible to determine without more information.

---

Definitions:

Mineral Water

Water that contains minerals or other dissolved substances that alter its taste or give it therapeutic value, usually obtained from wells or springs.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Marginal Cost

The added cost of producing one additional unit of a product or service.

Mineral Water

A type of water that contains various minerals and is often bottled and sold for consumption.