Considering the Concept of Cross-Price Elasticity,if Two Goods Are Complements

question 89

Multiple Choice

Considering the concept of cross-price elasticity,if two goods are complements:

• A) an increase in the price of one will cause a decrease in the demand for the other.
• B) an increase in the price of one will cause an increase in the demand for the other.
• C) a decrease in the price of one will cause a decrease in the demand for the other.
• D) the cross-price elasticity is positive.

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Definitions:

Avoidance

A defense mechanism or behavior aimed at evading unpleasant thoughts, feelings, or situations.

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

Identification

The process of establishing or describing the identity of something or someone.

Sublimation

A psychological mechanism by which impulses or fantasies that society deems unacceptable are converted into actions or behaviors that are considered acceptable.