If the Cross Elasticity of Demand Between Goods a and B

question 126

Multiple Choice

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

• 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.

---

Definitions:

Unconditioned Stimulus (UCS)

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.

Robert Rescorla

An American psychologist known for his work on the involvement of cognitive processes in classical conditioning, especially the contingency theory of learning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is initially elicited by the second stimulus is eventually elicited by the first stimulus alone.

Cognitive Focus

Concentration on or dedication of mental resources towards specific thoughts, tasks, or stimuli.