If the Cross-Price Elasticity of Demand Between Goods X and Y

question 129

Multiple Choice

If the cross-price elasticity of demand between goods X and Y is 0.9 this means:

• A)the two goods are complements and demand is elastic
• B)the two goods are complements and the demand is inelastic
• C)the two goods are substitutes and the demand is elastic
• D)the two goods are substitutes and the demand is inelastic

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Definitions:

Degrees Of Freedom

The number of independent values or quantities that can vary in the analysis without violating any constraints.

Significance Level

The probability threshold below which the null hypothesis is rejected in a statistical test, often denoted by alpha (α).

Cohen's D

A measure of effect size indicating the standardized difference between two means.

Small Effect

A situation where the observed changes or differences due to manipulation or intervention are minimal.