If the price of one good increases by 3 percent and the quantity demanded of another good increases by 2 percent, the cross elasticity is ________ and the two goods are ________

We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will decrease when

A) supply increases and demand decreases B) supply decreases and demand increases. C) supply and demand for a product simultaneously decrease. D) supply and demand for a product simultaneously increase.

A fall in the price of a competing product will produce an outward shift in the demand curve for most products

a. True b. False Indicate whether the statement is true or false