When Goods a and B Are Substitutes, Their

question 299

Multiple Choice

When goods A and B are substitutes, their

• A) cross elasticity will be negative.
• B) cross elasticity will be zero.
• C) cross elasticity will be positive.
• D) income elasticities will be unitary elastic.

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Definitions:

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving financial accounting standards in the United States.

Financial Accounting Standards Board

An independent organization responsible for establishing and improving standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.

SEC

The Securities and Exchange Commission, a U.S. government agency that oversees and regulates the securities markets to protect investors.

Accounting Standards

Guidelines set by regulatory bodies that dictate how financial transactions and statements should be recorded and reported.