If the Cross Elasticity of Demand Between Goods a and B

question 5

Multiple Choice

If the cross elasticity of demand between goods A and B is negative, then

• A)the demands for A and B are both price elastic.
• B)the demands for A and B are both price inelastic.
• C)A and B are complements.
• D)A and B are substitutes.
• E)A and B are independent goods.

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Definitions:

Legislation

Laws that have been promulgated (enacted) by a government body.

Attached

Connected or linked to something in a legal, financial, or emotional manner.

Title Transfer

The legal process of changing the ownership of a property from one person or entity to another, typically involving the execution of a deed or similar document.

Ruined Gas

Gasoline that has become contaminated or degraded, making it unusable for its intended purpose.