The cross-price elasticity of demand between product X and product Y is 2. It can be inferred that X and Y are
A. complements.
B. substitutes.
C. unrelated.
D. normal.
Answer: B
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The bargaining power of an LDC government in negotiating with a TNC is greatest when
a. it has large amounts of labor available b. it has a large market for a product c. it has a resource that few other countries have d. it can offer large tax breaks e. none of the above
Not all state and local taxes are deductible at the federal level
a. True b. False
When you see a preview of a coming movie at the movie theater, this is
A) informational advertising. B) direct market advertising. C) indirect market advertising. D) persuasive advertising.
An efficient tax system is one that imposes small
a. deadweight losses and administrative burdens. b. marginal rates and deadweight losses. c. administrative burdens and transfers of money. d. marginal rates and transfers of money.