Two Goods Are Complementary If

question 111

Multiple Choice

Two goods are complementary if:

• A) the income elasticity of demand is negative.
• B) each performs the same basic task.
• C) the cross elasticity of demand is positive.
• D) they are used together.

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Definitions:

Environmental Tobacco Smoke

Smoke from burning tobacco products and smoke exhaled by smokers, also known as secondhand smoke.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where supply equals demand.

Supply

Supply is the total amount of a specific good or service available to consumers, and it increases or decreases based on the good's price.

Demand

The desire for a particular good or service coupled with the ability and willingness to pay for it.