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Dr. Ramon makes the following claim: "Watching television leads people to spend less time communicating with their spouses, study says." Dr. LaSalle makes the claim: "Research shows that making more money correlates with spending less time talking with your spouse."
Which of the following statements is true of Dr. Ramon's and Dr. LaSalle's claims?
Cross-price Elasticity
A measure of how the demand for one good changes in response to changes in the price of another good.
Substitutes
Alternate products or services that can satisfy the same consumer need, allowing consumers to switch between them based on preference, price, or availability.
Cross-price Elasticity
A measure of how the demand for one good responds to a change in the price of another good, indicating substitutes or complements.
Complements
Goods or services that are used together, such that an increase in demand for one leads to an increase in demand for the other.
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