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:

Natural-Resource Abundant

Refers to countries or regions possessing significant amounts of valuable natural resources, such as minerals, oil, or fertile land, which can contribute to their economic growth and development.

Land-Intensive

Describes production processes or industries that require a large amount of land to produce goods or services, compared to labor or capital.

Petroleum Exports

The selling and shipment of petroleum products from one country to another.

Petroleum Imports

These refer to the acquisition of crude oil or refined petroleum products from foreign countries.