If the Cross-Price Elasticity Between Goods X and Y Is

question 133

Multiple Choice

If the cross-price elasticity between goods X and Y is positive,we know the goods are:

• A) inferior goods.
• B) complements.
• C) inelastic.
• D) substitutes.

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Definitions:

Scarce Inputs

Resources or factors of production that are limited in supply, which constrains economic output and allocative efficiency.

Petroleum Production

The process of extracting crude oil from the earth and refining it into usable petroleum products.

Medical Care

The diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans through professional services.

Constant-cost Industry

An industry where input prices do not change as industry output changes, resulting in a horizontal supply curve.