In the above figure, if the price of good A falls from P0 to P1 and the demand for good B increases from D0 to D1, then goods A and B
A) are substitute goods.
B) are inferior goods.
C) will have a negative cross elasticity of demand.
D) are both price elastic but not perfectly price elastic.
C
Economics
You might also like to view...
Suppose that in the economy of Boise, Amy earns an income of $50,000 a year and pays $10,000 in income taxes; Bailey earns an income of $25,000 a year and pays $8,000 in income taxes. Based on this information, we could say that Boise's tax system is
A) proportional. B) progressive. C) regressive. D) flat.
Economics
What would most likely cause the price to move from P1 to P2?
a. an increase in demand
b. an increase in supply
c. an increase in quantity
d. an increase in equilibrium
Economics