If the Cross-Price Elasticity of Demand Between Breeze Detergent and Faber

question 74

Multiple Choice

If the cross-price elasticity of demand between Breeze Detergent and Faber Detergent is a relatively large positive number, then it indicates that

• A)the two brands are probably made by the same company.
• B)the two brands of detergent are close substitutes.
• C)consumers have a distinct preference for one brand versus the other.
• D)detergents are necessities.

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Definitions:

Negative Instance

An item that belongs to a given class and does not possess the trait attributed to the class by a given generalization.

Inductive Generalization

A reasoning process that involves making broad generalizations based on specific observations.

General Principle

A broad and foundational rule or belief that guides actions and understanding in various situations.

Particular Cases

Specific instances or examples from a broader category used to illustrate a point or phenomenon.