If the Cross Elasticity of Demand for Two Goods Is

question 98

Multiple Choice

If the cross elasticity of demand for two goods is negative,

• A)one of the goods is necessarily a normal good, and the other good is necessarily an inferior good.
• B)both goods are normal goods.
• C)the goods are substitutes.
• D)the goods are complements.

---

Definitions:

High Grade Point Average

High Grade Point Average (GPA) reflects strong academic performance and achievement, typically indicating that a student has attained A or A+ grades in their coursework.

Prestigious University

An institution of higher education well-known for its high academic standards, distinguished faculty, and notable alumni.

Davis-Moore Thesis

A sociological proposition that argues social stratification has beneficial consequences for the operation of a society, suggesting that the most talented individuals are rewarded with the most important jobs and highest income.

Discrimination

Actions that deny or grant advantages to members of a particular group.