There Are Three Goods You Are Interested in Purchasing, X

question 59

Multiple Choice

There are three goods you are interested in purchasing, X, Y and Z. You notice that the price of Z has fallen. Given that the cross price elasticity between Z and Y is − 1.5; the cross price elasticity between Y and X is 3.0, and the cross price elasticity between Z and X is 0.50. It would make sense that:

• A) Z and X are complements; Y and X are substitutes.
• B) Y and X are substitutes; Y is complementary to Z.
• C) X and Z are unrelated; Y is complementary to X.
• D) X and Z are complements; Y and Z are substitutes.

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Definitions:

Narcolepsy

A lasting sleep disorder manifested by profound daytime sleepiness and instantaneous bouts of sleep.

Overwhelming Sleepiness

A condition characterized by extreme tiredness and a strong desire to sleep, often to the point where it interferes with daily activities.

Sleep Apnea

A disorder characterized by pauses in breathing or periods of shallow breathing during sleep.

Stops Breathing

A cessation of the flow of air into and out of the lungs, commonly referred to as apnea.