The Cross-Price Elasticity of Demand of Products "A" and "B

question 135

Multiple Choice

The cross-price elasticity of demand of products "A" and "B" is zero. This implies that "A" and "B" are

• A) substitute products.
• B) complementary products.
• C) independent products.
• D) unique goods, as the price elasticity of demand for one of them is zero.

---

Definitions:

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Inflation Rate

The percentage increase in the price level of goods and services over a period, reducing purchasing power.

Thai Baht

The official currency of Thailand, used for financial transactions within the country.

Exchange Rate

The value of one currency for the purpose of conversion to another.