If Two Goods Are Substitutes,their Cross-Price Elasticity Will Be

question 46

Multiple Choice

If two goods are substitutes,their cross-price elasticity will be

• A)positive.
• B)negative.
• C)zero.
• D)equal to the difference between the income elasticities of demand for the two goods.

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Definitions:

Island Arc

A curved chain of volcanic islands located at a tectonic plate margin, typically formed above a subducting plate.

Mid-Ocean Ridge

An underwater mountain range, formed by plate tectonics, featuring peaks separated by valleys with a central rift valley that forms at divergent plate boundaries.

Subduction

A geologic process where one tectonic plate moves under another, sinking into the earth's mantle.

Caldera

A vast crater on a volcano, often resulting from a major eruption and subsequent collapse of the volcano's opening.