If the Cross Price Elasticity of Two Goods Is -3

question 68

Multiple Choice

If the cross price elasticity of two goods is -3.5,then

• A) these two products are relatively elastic substitutes.
• B) these two products are relatively inelastic substitutes.
• C) these two products are relatively elastic complements.
• D) these two products are relatively inelastic complements.

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Definitions:

Dependent Variable

The variable in a study that is anticipated to vary as a result of changes made to the independent variable.

Correlation Coefficient

A numerical measure that assesses the strength and direction of a linear relationship between two quantitative variables.

Covariance Value

A measure indicating the extent to which two variables change together, showing if increases in one variable correspond to increases in another.

Correlation Coefficient

A quantitative indicator showing both the magnitude and direction of a linear association between a pair of variables.