If the Cross-Price Elasticity of Two Goods Is 0

question 16

Multiple Choice

If the cross-price elasticity of two goods is 0.25,then we know that these goods are:

• A) substitutes because their cross-price elasticity is greater than zero.
• B) complements because their cross-price elasticity is less than 1.
• C) substitutes because their cross-price elasticity is less than 1.
• D) complements because their cross-price elasticity is greater than zero.

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