The government can act to internalize externalities by taxing goods that have negative externalities and subsidizing goods that have positive externalities

Julie always purchases the soda with the lowest price. For Julie, the cross price elasticity of demand for brand X and brand Y will be

A) equal to 0. B) negative. C) positive. D) impossible to determine without more information.

If two commodities are complements then:

a. the cross-price elasticity will be zero. b. the cross-price elasticity will be one. c. the cross-price elasticity will be negative. d. the cross-price elasticity will be positive.