If Two Goods Have a Cross Elasticity of Demand of -2,then

question 316

Multiple Choice

If two goods have a cross elasticity of demand of -2,then when the price of one good increases,the demand curve of the other good

• A) shifts rightward.
• B) shifts leftward.
• C) remains unchanged and the supply curve also remains unchanged.
• D) might shift rightward, leftward, or remain unchanged.
• E) remains unchanged but the supply curve shifts leftward.

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