If Pizza and Beer Are Complementary Goods,we Can Conclude That

question 108

Multiple Choice

If pizza and beer are complementary goods,we can conclude that

• A)the income elasticity of demand is positive.
• B)their cross-elasticity of demand is positive.
• C)both goods are inferior goods.
• D)the income elasticity of demand is negative.
• E)their cross-elasticity of demand is negative.

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Definitions:

Per Unit

A term that describes costs or revenues on a single unit basis.

Variable Costs

Expenses that directly fluctuate in proportion to the production or service activity level.

Activity

Any action or operation within a business or process.

Committed Fixed Costs

Long-term fixed costs that an organization has committed to, which are not easily changed, such as lease payments or insurance costs.