Multiple Choice
An economist estimates that for every 1 percent increase in the price of natural Christmas trees, the demand for artificial trees rises by .2 percent. From this information one can conclude that:
A) the income elasticity of demand for natural Christmas trees is less than 1.
B) natural Christmas trees are luxuries.
C) natural and artificial Christmas trees are substitutes.
D) natural and artificial Christmas trees are complements.
Correct Answer:
Verified
Correct Answer:
Verified
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