By reducing prices, competition encourages ________ transactions, which generates ________ cooperative surplus

Explain why the cross elasticity of demand for substitute goods is positive and the cross elasticity of demand for complements is negative

What will be an ideal response?

Heartland and Soulland) The country with a comparative advantage in the production of drill presses is:

A) Heartland. B) Soulland. C) neither; they both use the same technology. D) neither; they both use the same amount of resources.