You are told that the cross-price elasticity between goods X and Y is 2.0. This means that a. Goods X and Y are normal goods. b. Goods X and Y are inferior goods. c. Goods X and Y are complementary goods. d.Goods X and Yare substitute goods.

You are told that the cross-price elasticity between goods X and Y is 2.0. This means that a. Goods X and Y are normal goods. b. Goods X and Y are inferior goods. c. Goods X and Y are complementary goods. d.Goods X and Yare substitute goods.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You are told that the cross-price elasticity between goods X and Y is 2.0. This means that

a. Goods X and Y are normal goods.

b. Goods X and Y are inferior goods.

c. Goods X and Y are complementary goods.

d.Goods X and Yare substitute goods.

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