Whether a Cross-Price Elasticity of Demand Is Positive or Negative

question 72

Multiple Choice

Whether a cross-price elasticity of demand is positive or negative indicates whether the:

• A) goods are substitutes or complements.
• B) elasticities are reported in absolute value.
• C) demands are elastic or inelastic.
• D) goods are a luxury or a necessity.

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Definitions:

Oxytocin

a hormone that plays a role in social bonding, sexual reproduction, and during and after childbirth.

Testosterone

A steroid hormone primarily found in males, responsible for the development of male sexual characteristics and reproductive functions.

Dopamine

A neurotransmitter associated with movement, attention, learning, and the brain's pleasure and reward system.

Adrenaline

A hormone and neurotransmitter produced by the adrenal glands that increases heart rate, muscle strength, blood pressure, and sugar metabolism, often associated with the 'fight or flight' response.