Considering the Concept of Cross-Price Elasticity, If Two Goods Are

question 47

Multiple Choice

Considering the concept of cross-price elasticity, if two goods are complements:

• A) an increase in the price of one will cause a decrease in the demand for the other.
• B) an increase in the price of one will cause an increase in the demand for the other.
• C) a decrease in the price of one will cause a decrease in the demand for the other.
• D) a decrease in the price of one has no effect on the demand for the other.

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Definitions:

Rotation

The act or process of moving or causing something to move in a circle around an axis or center.

Axis

A central line around which other things rotate or are symmetrically arranged; in anatomy, it refers to the second cervical vertebra.

Extension

An increase in the angle between bones at a joint or the straightening of a limb.

Straightening Movement

refers to the motion aimed at making something linear or rectifying its alignment.