If the Cross Elasticity of Demand for DVD Players and DVDs

question 304

Multiple Choice

If the cross elasticity of demand for DVD players and DVDs equals -2,then the products are

• A) unrelated.
• B) complements.
• C) inferior goods.
• D) substitutes.
• E) normal goods.

---

Definitions:

Delivery Cycle Time

The total time taken from receiving a customer order to delivering the finished product to the customer, encompassing all stages of the order processing and production process.

Turnover

The rate at which inventory or assets of a business are replaced or sales are made over a specific period.

Margin

Generally refers to the difference between the selling price of a good or service and its cost, expressed as a percentage of the selling price.

Residual Income

The income that remains after deducting all required costs of capital from operating income, used as a measure of profitability.