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:

Associate

A person who is linked with another or others in business or professional activities.

Bar Exam

A professional examination that must be passed to legally practice law in a given jurisdiction.

Corporate Stock

Ownership units in a corporation, represented by shares that can be bought, sold, or traded.

Shareholder

An owner of shares in a company or corporation, giving them certain rights and potential financial benefits.