If the Cross-Price Elasticity of Demand of Two Goods Is

question 92

Multiple Choice

If the cross-price elasticity of demand of two goods is negative, we can conclude that the two goods are:

• A) substitutes.
• B) complements.
• C) normal goods.
• D) inferior goods.

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Definitions:

Income

The sum of all a household’s wages, salaries, profits, interest payments, rents, and other forms of earnings in a given period of time. It is a flow measure.

Price

The cost at which something is sold or bought, determining the economic transaction between buyers and sellers.

Hot Dog

A cooked sausage, traditionally grilled or steamed and served in a partially sliced bun as a sandwich.

Hamburger

A popular food item consisting of a cooked patty, usually made from ground beef, placed inside a sliced bun, often served with various condiments and toppings.