If Two Goods,X and Y,have a Negative Cross Elasticity of Demand,then

question 17

Multiple Choice

If two goods,X and Y,have a negative cross elasticity of demand,then we know that they

• A)are substitutes.
• B)are complements.
• C)are both inferior goods.
• D)each have a price elasticity greater than one.
• E)are both normal goods.

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Definitions:

Density Curve

A smooth curve used in statistics to describe the distribution of data where the area under the curve corresponds to the probability of occurrences within a range.

Continuous Random Variables

Variables that can assume an infinite number of values within a given range.

Independent Events

Two or more events that have no influence on each other's occurrence, so that the probability of one event does not change the probability of another.

Sample Space

The set of all possible outcomes of a statistical experiment.