A Negative Cross Elasticity of Demand Means That Two Goods

question 390

Multiple Choice

A negative cross elasticity of demand means that two goods are _____, while a negative income elasticity of demand means that a good is a(n) _____ good.

• A) complements; normal
• B) complements; inferior
• C) substitutes; normal
• D) substitutes; inferior

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Definitions:

Express Contract

An agreement where the terms are clearly stated by the parties, either verbally or in writing.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across states.

Interstate

Refers to activities, agreements, or commerce that occur or are conducted between two or more states.

Express Contract

A contract where the terms of the agreement are explicitly stated in words, whether oral or written.