Multiple Choice
If the cross elasticity of demand for potato chips and pretzels equals 1.5,
A) potato chips and pretzels must both be luxury goods.
B) either potato chips or pretzels must be a luxury good, and both may be luxury goods.
C) potato chips and pretzels must be substitutes.
D) potato chips and pretzels must be complements.
Correct Answer:
Verified
Correct Answer:
Verified
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