If Two Goods Are Substitutes, the Cross-Price Elasticity of Demand

question 97

Multiple Choice

If two goods are substitutes, the cross-price elasticity of demand between the goods lies between _____.

• A) 0 and 0.5
• B) -0.5 and +0.5
• C) 0 and ∞
• D) ∞ and -∞

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Definitions:

Data Set

A collection of related data points or information, typically organized for analysis, research, or informational purposes.

Median

A statistical measure representing the middle value in a set of data, where half the numbers are above and half are below.

Mean

The average value of a group of numbers, calculated by dividing the sum of all the numbers by the count of the numbers.

Frequency Distribution

a representation, often in the form of a table, that shows the number of observations within a particular range of values, used in statistics to summarize data sets.