The Cross Price Elasticity Between X and Y Is -1

question 3

Multiple Choice

The cross price elasticity between X and Y is -1.8. We can conclude that

• A) goods X and Y are substitutes.
• B) goods X and Y are complements.
• C) goods X and Y are unrelated.
• D) perfect substitutes

---

Definitions:

Distributional Justice

The ethical consideration of the fairness in the spread of wealth, income, and resources among all members of society.

Rawlsian Justice

A theory of justice that emphasizes fairness and equality, proposing that social and economic inequalities should be arranged to benefit the least advantaged members of society.

Social Contract

A philosophical theory or model that originates from the Age of Enlightenment, positing that individuals have consented, either explicitly or tacitly, to surrender some of their freedoms and submit to an authority in exchange for protection of their remaining rights.

Rawlsian Justice

A theory of justice that emphasizes fairness and equality, proposing principles to structure society for the benefit of all, especially the least advantaged.