When Two Goods Are Substitutes for Each Other, the Cross

question 380

Multiple Choice

When two goods are substitutes for each other, the cross price elasticity of demand

• A) will be negative.
• B) will be zero.
• C) may be either positive or negative.
• D) will be positive.

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Definitions:

Sole Proprietorship

An individual carrying on business alone.

Partnership

When the ownership and responsibilities of a business are shared by two or more people with a view toward profit.

Incorporation Process

The series of legal steps taken to form a legally recognized company or corporation.

Jurisdiction

The official power to make legal decisions and judgments, typically a geographic area or over certain types of legal cases.