Suppose the Cross Elasticity of Demand for Two Goods,X and Y,is

question 4

Multiple Choice

Suppose the cross elasticity of demand for two goods,X and Y,is positive.If the price of Y falls,then quantity demanded will

• A)rise for both goods.
• B)fall for X and rise for Y.
• C)fall for both goods.
• D)rise for X and fall for Y.
• E)remain the same for both goods.

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Definitions:

Trading Securities

Securities bought and held primarily for sale in the near term to generate income on short-term price differences.

Unrealized Gain

The increase in value of an asset that has not been sold yet, therefore the gain is not reflected in the income statement.

Consolidated Financial Statements

Financial statements that present the assets and liabilities controlled by the parent company and the total revenues and expenses of the subsidiary companies.

Subsidiary Company

A company that is entirely or majority-owned by another company, referred to as the parent company.