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    Macroeconomics Study Set 57
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    Exam 4: Elasticity
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    If Two Goods Are Substitutes, Then Their Cross-Price Elasticity of Demand
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If Two Goods Are Substitutes, Then Their Cross-Price Elasticity of Demand

Question 57

Question 57

Multiple Choice

If two goods are substitutes, then their cross-price elasticity of demand is:


A) positive.
B) negative.
C) zero.
D) between zero and minus one.

Correct Answer:

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