When cross elasticity of demand is a large positive number, one can conclude that

A The good is normal
B The good is inferior
C The good is a substitute
D The good is complement

Correct Answer: The good is a substitute

When cross elasticity of demand is a large positive number, one can conclude that the good is complement. Two goods that complement each other have a negative cross elasticity of demand: as the price of good Y rises, the demand for good X falls.
Bissoy MCQ
#Commerce #Economics

Related Questions

when demand for factory's products is high . more money is spent at the factory for safety precautions and machinery maintenance than when demand is low. thus the average number of on -the-job accidents per employee each month should be lower during perids when demand is high than when demand is low and less money is available for safety precautions and machinery maintenance .when demand for its products is high, casts the most serious doubt on the conclusion drawn above?
A Employees demand for higher wages than they do at other times.
B Authority hires new workers but lacks the time to rain them properly.
C Employees are less likely to lose their jobs than are at other times.
D Authority sponsors a monthly safety award for each division in the factory.
When demand for a factory's products is high, more money is spent at the factory for safety precautions and machinery maintenance than demand is low. Thus the average number of on-the-job accidents per employee each month should be bower during periods when demand is high than when demand is low and less money is available for safety precautions and machinery maintenance. Which of the following,if true about a factory when demand for its product is high casts the most serious doubt on the conclusion drawn above?
A Its employees ask for higher wages than they do at other times.
B Its management hires new workers but lacks the time to train them properly.
C Its employees are less likely to lose their jobs than they are at other times.
D Its management sponsors a monthly safety award for each division in the factory.
আড়াআড়ি স্থিতিস্থাপকতার মান ধনাত্মক হলে দ্রব্যটির ধরন কী? (What is the type of commodities, if the value of cross-price elasticity is positive?)
A পরিবর্তক (Substitute)
B পরিপূরক (Complementary)
C সম্পর্কহীন (Unrelated)
D সমান্তরাল (Parallel)
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C BOD > COD > TOD
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2 large and 1 small pumps can fill a water tank in 4 hours. 1 large and 3 small pumps can also fill the same water tank in 4 hours . How many hours will it take for 3 large 4 small pumps to fill the tank?
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Rate of change of price of common cooking salt and the quantity demanded of such can be best described by the following elasticity state of demand (no change in any possible intervening factor assumed)
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