If There Are Only Two Goods and These Are Consumed

question 39

Multiple Choice

If there are only two goods and these are consumed in fixed proportions,the price elasticities of demand for these two goods will sum to

• A)0.0
• B)-0.5
• C)-1.0
• D)a number between 0 and -1.

---

Definitions:

Investment Turnover

A measure of the efficiency of a company in using its investments to generate sales revenue.

Sales Dollar

Refers to the total monetary value of all sales transactions within a given period.

Profit Earned

The financial gain obtained after subtracting all expenses, taxes, and costs from the revenue generated from business operations.

Profit Center

A separate business unit or department within an organization that is responsible for generating its own revenue and profits.