A negative value for the cross elasticity of demand between two goods indicates that
A) the goods are complements.
B) the goods are substitutes.
C) one of the goods is normal and the other is inferior.
D) each good is price inelastic.
A
You might also like to view...
What are the Nash equilibrium strategies for Firm A and Firm B respectively?
a. Low, Low b. Low, High c. High, Low d. High, High
Who asserted that "the Federal Reserve's job is to take away the punch bowl just as the party gets going?"
a. president George W. Bush b. president John F. Kennedy c. economist John Maynard Keynes d. former chairman of the Federal Reserve System William McChesney Martin
Along the IS curve, which of the following markets are in equilibrium?
A) the money and forex markets B) the goods and forex markets C) the goods and money markets D) the goods, money, and forex markets
Suppose a monopolist reduces its price in an effort to expand output. If the price effect equals the quantity effect, then the marginal revenue will be zero.
a. true b. false