The Cross Elasticity Between Computers and Software Is

question 341

Multiple Choice

The cross elasticity between computers and software is

• A) negative because they are substitutes.
• B) positive because they are substitutes.
• C) negative because they are complements.
• D) positive because they are complements.
• E) positive because they are normal goods.

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Definitions:

Complement

Goods or services that, when used together, enhance each other's value to the consumer.

Income Increase

A rise in the amount of money received, especially on a regular basis, through work, investments, or business.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, and vice versa.

Income Increase

A rise in the amount of money received, especially on a regular basis, through work, investments, or other sources.