If a Lower Price for Good X Increases the Demand

question 277

Multiple Choice

If a lower price for good X increases the demand for good Y,the cross elasticity value for the two goods is

• A) negative.
• B) equal to zero.
• C) positive and less than one.
• D) positive and greater than one.
• E) possibly negative, positive, or zero, but there is not enough information to decide.

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Definitions:

Survival of Society

The enduring and continuous existence of a society through the maintenance of its structures, customs, and values across generations.

Ability and Talent

Natural aptitudes or skills that individuals possess, which can be developed through practice and education.

Structural Functional

A perspective in sociology that sees society as a complex system whose parts work together to promote solidarity and stability.

Davis and Moore

Sociologists who proposed a functionalist theory suggesting that social stratification, or the division of society into classes, has a beneficial function in society.