The Sign of the Cross-Price Elasticity Tells Us Whether Two

question 108

Multiple Choice

The sign of the cross-price elasticity tells us whether two commodities are complements or substitutes,but the size of this elasticity measure tells us

• A)how the supply side of the market reacts to changes in demand
• B)whether the government should regulate the two markets
• C)which technology producers use
• D)how closely the two goods are related
• E)whether or not excess profits can be made in either market

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