If Goods X and Y Are Complements, Then the Cross

question 381

Multiple Choice

If goods X and Y are complements, then the cross price elasticity of demand will be

• A) elastic.
• B) greater than zero but less than 1.
• C) negative.
• D) positive.

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Definitions:

Herfindahl Index

An economic indicator used to measure the size of companies in relation to the industry and the level of competition among them.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, including high start-up costs, strict regulations, and established brand loyalty.

Differentiated Products

Differentiated products are goods or services that differ from other products in the market in terms of quality, features, branding, or other attributes that are valued by consumers.