The Cross Price Elasticity of Demand for Good X with Respect

question 40

Multiple Choice

The cross price elasticity of demand for Good X with respect to Good Y is 1.2 and that with respect to Good Z is -0.3.This implies:

• A)Good X and Good Y are complements.
• B)Good X and Good Z are substitutes.
• C)Good Y and Good Z are substitutes.
• D)Good X and Good Z are complements.

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