ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If two goods have negative price cross‑elasticities of demand, the goods are:
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inferior goods.
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luxury goods.
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complementary goods:
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substitute goods.
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Explanation:
Detailed explanation-1: -We determine whether goods are complements or substitutes based on cross price elasticity-if the cross price elasticity is positive the goods are substitutes, and if the cross price elasticity are negative the goods are complements.
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