Whether a Cross-Price Elasticity of Demand Is Positive or Negative

question 82

Multiple Choice

Whether a cross-price elasticity of demand is positive or negative:

• A)tells us whether the goods are substitutes or complements.
• B)tells us whether the elasticity is reported in absolute value.
• C)tells us whether the good is elastic or inelastic.
• D)None of these is true.

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Definitions:

Influences

The power or capacity to have an effect on the character, development, or behavior of someone or something.

Political Efficacy

The belief or confidence of individuals in their ability to influence the government or political processes.

Government

The system or group of people governing an organized community, often a state, with the authority to make and enforce laws, and to manage resources and affairs.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.