If Goods a and B Have a Cross Elasticity of Demand

question 21

Multiple Choice

If goods A and B have a cross elasticity of demand that is positive, this is evidence that goods A and B are __________ goods.

• A)complementary
• B)substitute
• C)normal
• D)inferior

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Definitions:

Scrap Value

The projected amount an asset is expected to generate when it is sold after reaching the end of its lifespan.

Double-Declining-Balance

A method of accelerated depreciation which doubles the rate of straight line depreciation, expensing more of the asset's value in the early years of its life.

Scrap Value

The anticipated market value of an asset at the end of its operational lifetime.

Sum-Of-The-Years-Digits

A depreciation method that results in a more accelerated write-off of the asset, calculated by adding together the digits of the asset's useful life years.