When Two Goods Are Complements, Their Cross-Price Elasticity of Demand

question 155

Multiple Choice

When two goods are complements, their cross-price elasticity of demand is:

• A) positive.
• B) negative.
• C) zero.
• D) equal to one.

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Definitions:

Account

An arrangement by which an individual or entity keeps track of their financial transactions and positions with another entity.

Accounting Records

Documents that businesses use to track their financial transactions and maintain financial accountability.

Journal

A record where all financial transactions are initially noted before they are posted to individual accounts in the ledger.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific period.