Multiple Choice
Good A has an income elasticity equal to 1.0 and a cross price elasticity with respect to Good B of -0.6. Then:
A) Good A is an inferior good and Goods A and B are substitutes.
B) Good A is an inferior good and Goods A and B are complements.
C) Good A is a normal good and Goods A and B are substitutes.
D) Good A is a normal good and Goods A and B are complements.
Correct Answer:

Verified
Correct Answer:
Verified
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