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.

---

Definitions:

Variable Costs

Expenses that vary in relation to the amount of output or business operations.

Fixed Costs

Business expenses that remain constant, regardless of the level of production or sales activity.

Break-even Sales

The amount of revenue from sales that equals the total of variable and fixed costs, with no profit or loss.

Variable Cost

Variable costs are expenses that change directly and proportionally with the level of production or business activity, such as materials and labor costs.