ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following measures of elasticity indicates that two goods are substitutes
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A negative income elasticity of demand
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A positive price elasticity of demand
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A positive cross elasticity of demand
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A negative cross elasticity of demand
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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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