When Two Goods Are Complements,we Expect Their Cross-Price Elasticity of Demand

question 41

Multiple Choice

When two goods are complements,we expect their cross-price elasticity of demand to:

• A)be positive.
• B)be negative.
• C)be zero.
• D)equal 1.

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Definitions:

Warranty Sales

Revenues generated from the sale of warranties, which guarantee the repair or replacement of a product.

Disgruntled Employee

An employee who is discontented or dissatisfied with their job, potentially leading to reduced productivity or morale in the workplace.

Vacation Pay

Compensation for employees for time not worked due to vacation, accounted for by employers as a liability until used.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.