If the cross elasticity of demand between goods A and B is positive
A) the demands for A and B are both price elastic.
B) the demands for A and B are both price inelastic.
C) A and B are complements.
D) A and B are substitutes.
D
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In the figure above, if a tax of $2 per widget is imposed on sellers, then the price of widgets paid by the buyer will be
A) more than or equal to $8. B) between $8 and $6. C) $6. D) less than $6.
Andrea Schwatz has argued that the Great Depression was caused by
a. the fall in the stock of money. b. the fall in consumer durable spending. c. the fall in investment spending. d. the increase in nominal wages.
The life insurance industry is an example of an industry with imperfect information.
Answer the following statement true (T) or false (F)
Currency in circulation is included in
A. Both M1 and M2. B. M1 only. C. M2 only. D. None of the choices are correct.