If the Cross Elasticity of Demand Between Goods a and B

question 372

Multiple Choice

If the cross elasticity of demand between goods A and B is negative

• A) the demands for A and B are both price elastic.
• B) the demands for A and B are both price inelastic.
• C) A and B are complements.
• D) A and B are substitutes.

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Definitions:

Intellectual Property

Rights based on creations of the mind in areas such as industry, science, literature, and arts.

Binding Contract

A legally enforceable agreement between two or more parties that is obligatory and has specific terms that must be adhered to.

Elements

Fundamental components or basic building blocks that constitute a whole, whether in nature, science, or a structured system.

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability protection and the ability to raise capital through issuing shares.