When Two Goods Are Complements

question 409

Multiple Choice

When two goods are complements,

• A) the demands for both goods will be elastic.
• B) cross price elasticity of demand will be 0.
• C) cross price elasticity of demand will be negative.
• D) cross price elasticity of demand will be positive.

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Definitions:

Transportation

The process or means by which passengers or goods are moved from one location to another.

Lien

A legal right or claim against a property by a creditor to secure the payment of a debt.

Real Property

Refers to land and any permanent structures or improvements attached to the land, such as buildings or houses.

Debt

Money owed by one party to another under conditions of repayment.