The Cross-Price Elasticity of Demand Between Good X and Good

question 131

Multiple Choice

The cross-price elasticity of demand between good X and good Y is 0.5. Given this information, which of the following statements is true?

• A) The demand for goods X and Y is inelastic.
• B) Goods X and Y are substitutes.
• C) Goods X and Y are complements.
• D) The demand for goods X and Y is income inelastic.

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Definitions:

Acceleration

Acceleration is the rate at which an object changes its velocity, which can involve speeding up, slowing down, or changing direction.

School System

An organized framework that is designed to educate students, typically comprised of various levels such as primary, secondary, and higher education.

Remediation

The process of providing corrective education or training to improve skills in specific areas where deficiencies are identified.

Enrichment

The process of improving or enhancing the quality or value of something, often referring to educational and personal development activities.