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

question 283

Multiple Choice

If the cross-price elasticity of demand for two goods 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,but the demand for the other good violates the law of demand.

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Definitions:

Group Norms

The shared expectations and rules that guide the behavior of people within social groups.

Incidental Supplies

Items or materials used occasionally and unpredictably in the course of work or daily activities, not central but necessary for completing tasks.

Vital Supplies

Essential items or materials required for life, health, and wellbeing, especially during emergencies or in medical settings.

Periodic Supplies

Items that are needed and replenished on a regular basis for the operation or maintenance of a process, system, or environment.