If the demand for product A displays high and positive cross-price elasticity with respect to the price of product B, then
A. products A and B are complements.
B. the demand for product B is likely to have a low price elasticity.
C. the demand for product A is likely to have a low price elasticity.
D. products A and B are substitutes.
Answer: D
Economics
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Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy causes the value of the dollar to _____, while expansionary monetary policy causes the value of the dollar to _____
a. rise; rise b. fall; fall c. fall; rise d. rise; fall
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Saving is
a. the sum of the funds people hold in their checking accounts. b. after-tax income that is not spent on consumption. c. always equal to consumption. d. equal to disposable income plus consumption.
Economics