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    Principles of Macroeconomics Study Set 8
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    Exam 5: Elasticity and Its Applications: The Elasticity of Demand
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    If Two Goods Are Substitutes,their Cross-Price Elasticity Will Be
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If Two Goods Are Substitutes,their Cross-Price Elasticity Will Be

Question 46

Question 46

Multiple Choice

If two goods are substitutes,their cross-price elasticity will be


A) positive.
B) negative.
C) zero.
D) equal to the difference between the income elasticities of demand for the two goods.

Correct Answer:

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