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

question 35

Multiple Choice

The cross-price elasticity of demand between good X and good Y is 2.75. 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:

Feelings of Autonomy

The emotion or perception of being self-directed and free, having the capacity to make one's own choices.

Shame and Doubt

A phase in early childhood development posited by Erik Erikson, where children grapple with issues of autonomy vs. shame and doubt.

Bowlby's View

A perspective on attachment theory developed by John Bowlby, emphasizing the importance of a secure attachment between caregiver and child for healthy emotional and social development.

Difficult Temperament

A behavioral characteristic marked by a high level of fussiness, fearfulness, or negativity and challenge in adapting to new situations.