When two goods have positive cross elasticities of demand and negative income elasticities, they are:
a. Normal and substitutes
b. Normal and complements.
c. Inferior and substitutes.
d. Inferior and complements.
c
You might also like to view...
Answer the following questions true (T) or false (F)
1. The marginal value product for labor is equal to the marginal physical product for labor times the product price. 2. Average variable costs is equal to the firm's total variable costs divided by its total output. 3. An example of average physical product in agriculture is the yield or number of bushels of corn produced per acre.
An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:
A. increase private saving. B. increase public saving. C. decrease public saving. D. reduce investment in new capital equipment.