If the cross-price elasticity between goods X and Y is zero, we know the goods are:
A. independent.
B. substitutes.
C. inelastic.
D. complements.
Answer: A
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A stereo system in Mexico costs 3,200 Mexican pesos. If the dollar price of one Mexican pesos is $0.11, then the U.S. dollar value of the same stereo system is $352
a. True b. False Indicate whether the statement is true or false
A technological advance that reduces the cost of producing computers will shift the supply curve of computers to the right
a. True b. False Indicate whether the statement is true or false
The Scarcity Principle applies to:
A. consumers primarily. B. firms primarily. C. everyone. D. poor people primarily.
The Coase Theorem implies that _____
a. absent transactions costs, resources will be efficiently allocated b. absent transactions costs, resources will be inefficiently allocated c. with significant transactions costs, resources will be efficiently allocated d. with significant transactions costs, resources will be inefficiently allocated