If the Cross Price Elasticity of Demand Between Two Commodities

question 290

Multiple Choice

If the cross price elasticity of demand between two commodities is positive, then these commodities are

• A) are superior.
• B) are complements.
• C) are substitutes.
• D) are inferior.

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Definitions:

Principle of Closure

A gestalt psychology principle that the mind tends to perceive incomplete figures as complete by filling in missing information.

Figure-Ground Principle

A visual perception principle that describes how humans differentiate an object (the figure) from its surrounding area (the ground).

Market Position

A brand's unique standing and perception in the minds of consumers relative to competing brands.

Evaluation

Evaluation involves the systematic assessment of the value, performance, or importance of an object, project, or program, based on relevant criteria or standards.