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Suppose Goods a and B Are Substitutes for Each Other

Question 152

Multiple Choice

Suppose goods A and B are substitutes for each other.We would expect the cross-price elasticity between these two goods to be


A) positive.
B) negative.
C) either positive or negative.It depends whether A and B are normal goods or inferior goods.
D) either positive or negative.It depends whether the current price level is on the elastic or inelastic portion of the demand curve.

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