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If the Cross- Price Elasticity Between Goods X and Y

Question 107

Multiple Choice

If the cross- price elasticity between Goods X and Y is - 2.0, the goods are _________ _ and an increase in the price of Good X will cause a(n) _________ in the quantity demanded of Good Y.


A) complements; decrease
B) substitutes; decrease
C) complements; increase
D) substitutes; increase

Correct Answer:

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