Smart Phones and Apps Are Complementary Goods

question 20

Multiple Choice

Smart phones and apps are complementary goods.The cross price elasticity of demand between smart phones and apps is expected to be.

• A)Positive.
• B)Negative.
• C)Equal to zero.
• D)Undefined.

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Definitions:

Merchantability

A warranty that goods sold will meet reasonable expectations of quality and functionality as implied in a sale.

Implied Warranty of Merchantability

A legal presumption that goods sold by a merchant are fit for the general purpose for which they are sold and meet the standards of quality and performance that are reasonable to expect.

Disclaimer

A statement that denies responsibility or affiliation with information, products, or services.

Express Warranty

A legal term referring to a formal, written guarantee by a seller to a buyer that a product or service meets certain specifications.