When the Cross Elasticity of Demand Between Two Goods Is

question 114

Multiple Choice

When the cross elasticity of demand between two goods is __________, the goods are __________.

• A)negative; substitutes for one another
• B)negative; complements for one another
• C)positive; normal goods
• D)positive; inferior goods

---

Definitions:

Direct Materials Purchases Variance

The difference between the actual costs of materials purchased and the expected (or standard) costs for the materials used.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product. They are an essential component of the total manufacturing cost of a product.

Variance

The difference between planned or expected performance and actual performance, often analyzed in budgeting and performance management.

Liters

A metric unit of volume equal to 1,000 cubic centimeters, commonly used to measure liquids.