If the Cross Price Elasticity Between Goods a and B

question 21

Multiple Choice

If the cross price elasticity between Goods A and B equals 0.7, then a reduction in the price of Good B will:

• A)​increase the demand for Good A and increase Good A's price as a result.
• B)​increase the demand for Good A and decrease Good A's price as a result.
• C)​decrease the demand for Good A and increase Good A's price as a result.
• D)​decrease the demand for Good A and decrease Good A's price as a result.

---

Definitions:

Lava Flows

Streams of molten rock that pour or ooze from an erupting vent, cooling and solidifying as they move.

Office Romance

A romantic relationship between two individuals working in the same organization, which can raise concerns regarding professionalism, ethics, and potential conflicts of interest.

Online Social Networking

The use of internet-based platforms and websites that enable users to interact, share information, and create communities based on shared interests or connections.

Negative Gossip

Harmful or malicious rumors or talk about someone that can damage their reputation or relationships.