When Two Goods Are Unrelated Then

question 47

Multiple Choice

When two goods are unrelated then

• A) cross-price elasticity of demand will be zero.
• B) cross-price elasticity of demand will be positive.
• C) cross-price elasticity of demand will be negative.
• D) the demand for both goods will be elastic.
• E) cross-price elasticity of demand will be infinite.

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Definitions:

Allowances

Amounts set aside for adjustments or reductions in the value of accounts or inventories, often for potential bad debts or depreciation.

Withheld

Refers to amounts deducted from an employee's wages or payments, often pertaining to taxes or other legal obligations, not immediately paid to the employee.

Interstate Commerce

A test that is applied to determine whether an employer must follow the rules of the Fair Labor Standards Act. If an employer communicates or does business with another business in some other state, it is usually considered to be involved in interstate commerce.

FICA

FICA refers to the Federal Insurance Contributions Act, which is a U.S. law that requires a payroll tax to fund Social Security and Medicare programs.