If Goods a and B Are Complements, Then

question 306

Multiple Choice

If goods A and B are complements, then

• A) the cross elasticity of demand between A and B is negative.
• B) the cross elasticity of demand between A and B is positive.
• C) their income elasticities of demand are both greater than 1.
• D) their income elasticities of demand are both less than 1.

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Definitions:

Confusion

A state of perplexity or disorientation, often due to a lack of understanding or clarity.

Contradictory Information

Information that is in direct opposition to other information, creating a conflict or dilemma.

Decisiveness

The ability to make decisions quickly and effectively.

ESP

Extra-Sensory Perception, a claimed ability to gain information without through the known human senses but instead through mind, often considered a pseudoscience by the scientific community.