If the Cross Elasticity of Demand for Potato Chips and Pretzels

question 181

Multiple Choice

If the cross elasticity of demand for potato chips and pretzels equals 1.5,

• A)potato chips and pretzels must both be luxury goods.
• B)either potato chips or pretzels must be a luxury good, and both may be luxury goods.
• C)potato chips and pretzels must be substitutes.
• D)potato chips and pretzels must be complements.

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