Last Month,sellers of Good Y Took in $100 in Total

question 244

Multiple Choice

Last month,sellers of good Y took in $100 in total revenue on sales of 50 units of good Y.This month sellers of good Y raised their price and took in $120 in total revenue on sales of 40 units of good Y.At the same time,the price of good X stayed the same,but sales of good X increased from 20 units to 40 units.We can conclude that goods X and Y are

• A)substitutes,and have a cross-price elasticity of 0.60.
• B)complements,and have a cross-price elasticity of -0.60.
• C)substitutes,and have a cross-price elasticity of 1.67.
• D)complements,and have a cross-price elasticity of -1.67.

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Definitions:

Financial Statements

Documents that present the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

Chief Operating Officers

High-ranking executives responsible for overseeing the day-to-day administrative and operational functions of a company.

Foreign Corporation

Firm that operates in states where it is not incorporated.

Domestic Corporation

Company that operates in the state where it is incorporated.