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:

Standards Organizations

Bodies responsible for developing, coordinating, and promoting technical standards to ensure quality, safety, and interoperability of products and services.

Toy Airplane

A miniature representation of an airplane, designed as a toy for children to play with, often mimicking the design and features of real aircraft.

Propeller

A mechanical device with blades that rotate to push against air or water, generating thrust to move vehicles like airplanes and boats.

Wheel Axle

A simple machine comprising a wheel attached to a rod (axle), used to transfer force and motion effectively.