If Good a and Good B Are Substitutes, Then the Cross

question 38

Multiple Choice

If good A and good B are substitutes, then the cross price elasticity of demand of good A for a change in the price of good B is

• A)Negative and more negative than -1
• B)Negative but less negative than -1
• C)Zero
• D)Positive

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Definitions:

Discounts

Discounts are reductions from the usual cost of goods or services, often used as an incentive for purchase.

Double-Entry Bookkeeping

An accounting method where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation balances.

Posting

The transfer of information from one record to another. This might be an automated process, depending on the electronic system in place.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.