Suppose that the cross price elasticity of demand between good X and good Y is -1.55. This indicates that the two goods are
A) substitutes.
B) complements.
C) both inferior.
D) completely unrelated in the minds of consumers.
B
You might also like to view...
Approximately half of all U.S. workers are employed by various levels of government.
Answer the following statement true (T) or false (F)
In the 1973 movie Save the Tiger, Jack Lemmon plays Harry Stoner, the CEO of a clothing manufacturer whose business has fallen on hard times
In one of the key scenes of the movie, Stoner tries to convince his partner that they should hire someone to burn one of their buildings in order to collect on their insurance policy. Harry Stoner's actions are an example of A) asymmetric information. B) adverse selection. C) moral hazard. D) self-interest.
In the Free Banking Era (the period of no central bank),
(a) anyone could form a bank if they met the requirements. (b) banks were required to offer free financial services. (c) the federal government rescinded its tax on bank notes. (d) states rescinded their taxes on bank notes.
What is a mutual fund?