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

question 74

Multiple Choice

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

• A) an increase in the price of one causes a decrease in the demand for the other.
• B) a decrease in the price of one causes an increase in the demand of the other.
• C) an increase in the price of one causes an increase in the demand for the other.
• D) the cross-price elasticity is negative.

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