Considering the Concept of Cross-Price Elasticity,when Two Goods Are Substitutes

question 74

Multiple Choice

Considering the concept of cross-price elasticity,when two goods are substitutes:

• A)an increase in the price of one will cause an increase in the quantity demanded of the other.
• B)an increase in the price of one will cause a decrease in the quantity demanded of the other.
• C)a decrease in the price of one will cause an increase in the quantity demanded of the other.
• D)Any of these may be true.

---

Definitions:

Running

The action or activity of moving swiftly on foot, typically at a speed where both feet are off the ground simultaneously at regular intervals.

Bad Decisions

Choices made that lead to undesirable outcomes due to poor judgment, lack of information, or failure to anticipate consequences.

Insufficient Financing

A situation where the available financial resources are not adequate to support the current operations or growth plans of a business.

Maintaining Operations

The ongoing activities required to keep a system, process, or piece of equipment running effectively.