If the Cross Elasticity of Demand Between Goods a and B

question 372

Multiple Choice

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

• 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.

---

Definitions:

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Total Utility

The total amount of satisfaction derived from the consumption of a single product or a combination of products.

Marginal Utility

The additional satisfaction or utility received by consuming one more unit of a good or service.

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.