If the Cross Elasticity of Demand Coefficient for Potato Chips

question 90

Multiple Choice

If the cross elasticity of demand coefficient for potato chips and pretzels equals 1.5:

• A)​potato chips and pretzels must both be inferior goods.
• B)​potato chips and pretzels must both be normal goods.
• C)​potato chips and pretzels must be substitutes.
• D)​potato chips and pretzels must be complements.

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Definitions:

Full Disclosure Principle

An accounting guideline requiring companies to disclose all relevant financial information in their financial statements.