If the cross-price elasticity of demand between two goods is negative, then

a. the two goods are complements
b. the two goods are substitutes
c. as price of one good rises, the quantity demanded of the other good also rises
d. one of the goods must be inferior
e. the two goods are rarely used together by consumers


A

Economics

You might also like to view...

Which of the following would not be covered by copyrights?

A) a movie script B) a comic book C) a poem D) a prescription drug

Economics

On a straight-line production possibilities frontier, which of the following is true?

a. The problem of scarcity does not exist. b. Resources are imperfect substitutes. c. Opportunity costs are constant. d. Technology is rapidly expanding. e. Some resources are not being used efficiently.

Economics

Suppose equilibrium price in the market is $30, and the marginal revenue is $20. What is the price elasticity of demand?

A. -3. B. 3. C. -5. D. -2.

Economics

Crude oil is sold in a local market.

Answer the following statement true (T) or false (F)

Economics