If Goods X and Y Are Complements, Then the Cross

question 381

Multiple Choice

If goods X and Y are complements, then the cross price elasticity of demand will be

• A) elastic.
• B) greater than zero but less than 1.
• C) negative.
• D) positive.

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Definitions:

Law Of Supply

The principle that, all else equal, an increase in the price of a good will result in an increase in the quantity supplied.

Suppliers

Entities or individuals that provide goods or services to consumers, businesses, or other organizations.

Good

A physical item that is produced and can be offered to the market to satisfy a want or need.

Market Price

The price of a commodity when sold in a given market, determined by supply and demand dynamics.