If,for Two Goods,the Cross-Price Elasticity of Demand Is 1

question 84

Multiple Choice

If,for two goods,the cross-price elasticity of demand is 1.25,then

• A)the two goods are luxuries.
• B)the two goods are substitutes.
• C)one of the goods is normal and the other good is inferior.
• D)the demand for one of the goods conforms to the law of demand and the demand for the other good violates the law of demand.

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