A Negative Cross Elasticity of Demand Indicates That Two Commodities

question 41

Multiple Choice

A negative cross elasticity of demand indicates that two commodities are

• A) luxuries.
• B) necessities.
• C) unrelated.
• D) substitutes.
• E) complements.

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Definitions:

Proprietorship

A business structure where the enterprise is owned and run by one person, with no legal distinction between the owner and the business.

LLCs

Limited Liability Companies, a business structure in the United States that offers personal liability protection and flexibility in management and taxation to its members.

S-Type Corporations

S Corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

Personal Tax Rates

The percentage at which an individual is taxed on their income, which varies according to income levels and jurisdictions.