If Two Goods Both Had Negative Cross Elasticities and Negative

question 249

Multiple Choice

If two goods both had negative cross elasticities and negative income elasticities,

• A)​they are both normal and substitutes for one another.
• B)​they are both normal and complements for one another.
• C)​they are both inferior and substitutes for one another.
• D)​they are both inferior and complements for one another.

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Definitions:

Price Elasticity of Demand

Determining how a change in a product's price affects the demand for that product.

Krispy Kreme Doughnut

A brand known for its signature glazed doughnuts and other sweet treats, operating worldwide.

Daily Sales

The total volume or value of products and services sold within a single business day.

Demand Price Elasticity

The responsiveness of the quantity demanded of a good to a change in its price; it measures how consumers react to price changes.