Which One of the Following Pairs of Goods Is Likely

question 156

Multiple Choice

Which one of the following pairs of goods is likely to have a positive cross-price elasticity of demand?

• A) pancakes and waffles
• B) fruit and bacon
• C) butter and toast
• D) potatoes and sausage
• E) milk and coffee

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Definitions:

Common Stock

A form of corporate equity ownership, representing a share in the ownership of a company and a claim on a part of its profits.

Treasury Bills

Treasury bills are short-term government securities issued at a discount from the face value and mature at par, used by governments to raise funds to meet short-term financial needs.

Unsystematic Risk

The risk that is unique to a specific company or industry, which can be mitigated through diversification.