If the cross-price elasticity of demand between two goods is positive, then
a. consumers are being irrational
b. supply is elastic
c. the goods may have similar uses
d. the goods may go well together in consumption
e. one good must be a necessity
C
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Tax revenues are transferred from
A) state governments to the federal government. B) local governments to state and federal governments. C) one state government to other state governments. D) the federal government to state and local governments. E) the state and local governments to the federal government.
____ yields the same results as the theory of perfect competition, but requires substantially fewer assumptions than the perfectly competitive model
a. Baumol's sales maximization hypothesis b. The Pareto optimality condition c. The Cournot model d. The theory of contestable markets e. none of the above