For Which of the Demand Elasticities Is the Sign (Positive

question 164

Multiple Choice

For which of the demand elasticities is the sign (positive or negative) important in interpreting the meaning?

• A) Only the price elasticity of demand.
• B) Both the price elasticity of demand and the income elasticity of demand.
• C) Both the income elasticity of demand and the cross-price elasticity of demand.
• D) Only the cross-price elasticity of demand.
• E) All three elasticities (price,income,and cross-price).

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