Which of the Following Is Correct

question 335

Multiple Choice

Which of the following is correct?

• A) The cross elasticity of demand for substitute goods is positive.
• B) The cross elasticity of demand for substitute goods is negative.
• C) The cross elasticity of demand equals the percentage change in demand divided by the percentage change in income.
• D) The income elasticity of demand for a normal good is negative.
• E) The cross elasticity of demand for normal goods is positive.

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Definitions:

Second-order Response

Reactions or responses that are influenced by changes in underlying factors rather than by direct actions or stimuli.

Point-of-sale

The location or moment at which a transaction is completed, involving the exchange of goods or services for payment.

Reciprocity

A social norm of responding to a positive action with another positive action, fostering positive relations among individuals.

Research Survey

A systematic method of collecting information from individuals, typically by asking them questions through interviews or questionnaires, to gather data for analysis.