A Cross-Price Elasticity of -1

question 93

Multiple Choice

A cross-price elasticity of -1.2 indicates that the two goods under consideration are:

• A)inferior.
• B)elastically demanded.
• C)complements.
• D)substitutes.

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Definitions:

Fraudulent Misrepresentation

The tort that occurs when a misrepresentation is made with the intent to facilitate personal gain and with the knowledge that it is false.

Justifiable Reliance

The principle that a party has acted upon another's representation with a reasonable belief that it was true, often relevant in cases of fraud or misrepresentation.

Nondisclosure

A failure to provide pertinent information about a projected contract.

Basic Assumption

A fundamental principle or belief that is accepted as true without proof.