Whether a cross-price elasticity of demand is positive or negative indicates whether the:
A. good's demand is elastic or inelastic.
B. goods are substitutes or complements.
C. elasticity is reported in absolute value.
D. good is a luxury or a necessity.
Answer: B
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Over the past several decades, what has been true about inflation in the United States?
A) Inflation has been very stable. B) The nation has experienced persistent deflation. C) Inflation rates have been consistently negative. D) Inflation rates have been consistently positive.
A person has a comparative advantage in an activity whenever she
A) has an absolute advantage in the activity. B) can perform the activity at a lower opportunity cost than another person can. C) can do the activity in less time than anyone else. D) can do everything better than anyone else.
Which of the following observations is not true?
A. Demand curve of the perfectly competitive firm is perfectly elastic. B. There is only one price for a product in a perfectly competitive market. C. A firm in a perfectly competitive market can sell as much as it wants at market price. D. Demand curve of the perfectly competitive industry is perfectly elastic.
Mutual funds are a type of financial intermediary
a. True b. False Indicate whether the statement is true or false