The cross-price elasticity of two goods is 2. This tells us the two goods are:
A. substitutes.
B. complements.
C. unrelated.
D. inelastic.
B. complements.
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If a consumer purchases any combination of goods and services on his ________, he will exhaust his income completely
A) indifference curve B) budget constraint C) demand schedule D) demand function
The concept of depreciation while widely employed, has little economic basis
a. True b. False
When wages increase, the income effect a. increases the quantity of labor supplied b. increases the supply of labor
c. decreases the quantity of labor supplied d. decreases the supply of labor.
A network externality exists
a. in the television industry b. outside the television industry c. whenever an increase in the size of a network increases its value to current and potential members d. whenever an increase in the size of a network increases its average total cost of production e. whenever an increase in the size of a network increases its total cost of production