Consider the Following Pairs of Items

question 12

Multiple Choice

Consider the following pairs of items:
a. shampoo and conditioner
b. iPhones and earbuds
c. a laptop computer and a desktop computer
d. beef and pork
e. air-travel and weed killer
Which of the pairs listed will have a negative cross-price elasticity?

• A) a and b only
• B) c and d only
• C) e only
• D) a, b, and c only

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Definitions:

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments, known for advocating increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.

Aggregate Demand

Aggregate ask for products and services within an economy, designated at a particular all-encompassing price level throughout a specified interval.

Unemployment

Unemployment is the situation where individuals who are capable of working and are actively seeking employment are unable to find a job.

Aggregate Demand

The complete need for every product and service within an economy at various price points, throughout a particular timeframe.