If the Cross-Price Elasticity of Demand Between Goods X and Y

question 15

Multiple Choice

If the cross-price elasticity of demand between goods X and Y is 2.4 this means:

• A) the two goods are complements and demand is elastic
• B) the two goods are complements and the demand is inelastic
• C) the two goods are substitutes and the demand is elastic
• D) the two goods are substitutes and the demand is inelastic

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