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-In the Above Figure, If the Price of Good a Falls

Question 324

Multiple Choice

-In the above figure, if the price of good A falls from P<sub>0</sub> to P<sub>1</sub> and the demand for good B increases from D<sub>0</sub> to D<sub>1</sub>, 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.
-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.

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