A cross-price elasticity value that is negative will always indicate goods that are substitutes.

a. true
b. false


Answer: b. false

Economics

You might also like to view...

Refer to the table above. If investment expenditure falls by $10,000 in the next year, ________, all other variables remaining unchanged

A) gross domestic product will fall to $467,000 B) gross domestic product will fall by $10,000 C) gross domestic product will increase by $10,000 D) gross domestic product will increase to $500,000

Economics

Refer to Figure 21.2. If area A = 2,000, area B = 400, and area C = 2,600, what is the Gini coefficient for Ruratania (rounded to two decimal places)?

A) 0.08 B) 0.15 C) 0.48 D) 0.92

Economics

Assume a country is required by law to balance the budget every year. Suppose aggregate demand falls, causing a recession and a budget deficit

To balance the budget, what would the government need to do with the level of government spending and taxes? How would these changes in government spending and taxes affect aggregate demand and the economy?

Economics

Explain how the government can help the economy avoid a coordination failure

What will be an ideal response?

Economics