If Two Goods Have a Cross-Price Elasticity Value of +3

question 17

Essay

If two goods have a cross-price elasticity value of +3, are they substitutes or complements?

---

Definitions:

Obverse

The front or main view of an object such as a coin, or in logic, it refers to a proposition that is the affirmative counterpart to a negative statement.

Proposition

An assertion or declaration that demonstrates a viewpoint or judgment, and has the potential to be true or false.

Converse

The proposition that results from switching the subject and predicate terms in a categorical proposition.

Proposition

An expression that communicates an idea which can be evaluated as true or false, fundamental in conveying logical arguments.