If the Cross Elasticity of Demand Between Goods X and Y

question 10

Multiple Choice

If the cross elasticity of demand between goods X and Y is positive and between goods X and Z is negative, then X and Y are _______ and X and Z are _______.

• A) price inelastic; income elastic
• B) substitutes; complements
• C) price inelastic; complements
• D) complements; substitutes

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Definitions:

Accumulated Depreciation

The cumulative amount of depreciation that has been charged to a fixed asset throughout its period of use.

Original Cost

The initial expenditure involved in acquiring an asset, including purchase price, transportation, and installation.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear.

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted into cash in the upcoming year.