Which of the Following Statements Is True

question 20

Multiple Choice

Which of the following statements is true?

• A)The price elasticity of demand is positive when there is an inverse relationship between price and quantity demanded.
• B)A positive income elasticity indicates that demand for a good rises as consumer income falls.
• C)A positive cross-price elasticity for two goods and would arise if and were demand complements.
• D)A negative cross-price elasticity for two goods and would arise if and were demand complements.

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Definitions:

Canadian Dollar Depreciates

A decrease in the value of the Canadian dollar relative to another currency.

Canadian Imports

pertains to goods and services brought into Canada from other countries, contributing to the country’s supply of products available for consumption and use.

Canadian Customers

Individuals or entities in Canada who purchase goods or services, reflecting the consumer market in that geographical area.

Japanese Yen

The official currency of Japan, known for being one of the most traded currencies in the world.