Solved

There Are Three Goods You Are Interested in Purchasing, X

Question 59

Multiple Choice

There are three goods you are interested in purchasing, X, Y and Z. You notice that the price of Z has fallen. Given that the cross price elasticity between Z and Y is − 1.5; the cross price elasticity between Y and X is 3.0, and the cross price elasticity between Z and X is 0.50. It would make sense that:


A) Z and X are complements; Y and X are substitutes.
B) Y and X are substitutes; Y is complementary to Z.
C) X and Z are unrelated; Y is complementary to X.
D) X and Z are complements; Y and Z are substitutes.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions