When Two Goods Have Negative Cross Elasticities of Demand and Positive

question 85

Multiple Choice

When two goods have negative cross elasticities of demand and positive income elasticities, they are:

• A)​Normal and substitutes.
• B)​Normal and complements.
• C)​Inferior and substitutes.
• D)​Inferior and complements.

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Definitions:

Duty

What one ought to do, whether by virtue of his or her place or position in society (in Plato or Aristotle, for example) or by virtue of rational moral principles (as in Kant).

Obligation

A duty or commitment that one is bound to by law, promise, moral principles, or social custom.

Social Contract

A theory in political philosophy suggesting that the legitimacy of authority comes from an implicit agreement between the governing and the governed.

Legitimacy

The general belief that a rule, institution, or leader has the right to govern or dictate.