If Both of Two Goods Have Price Elasticities of Demand

question 158

Multiple Choice

If both of two goods have price elasticities of demand, price elasticities of supply, income elasticities of demand and cross elasticities of demand all equal to 2.0:

• A)​They are both normal and substitutes.
• B)​They are both normal and complements.
• C)​They are both inferior and substitutes.
• D)​They are both inferior and complements.

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Definitions:

Stoichiometric Reagents

Chemical substances used in reactions in exact proportions as determined by the reaction equations.

Hazardous Substances

Chemicals or compounds that might pose a risk or cause harm to health, safety, or the environment when improperly handled or released.

Carrying Capacity

The maximum population or load that a particular environment, system, or device can support sustainably.

Sustainability

The practice of maintaining processes or states over time, often specifically in ecological terms, without harmful impact on the natural environment or depletion of resources.