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Homework answers / question archive / The cross—price elasticity of demand between good X and good Y is 0

The cross—price elasticity of demand between good X and good Y is 0

Business

The cross—price elasticity of demand between good X and good Y is 0.5. Given this information,
which of the following statements is TRUE

The demand for goods X and Y is inelastic                       O

Goods X and Y are substitutes                                          O

Goods X and Y are complements                                      O

The demand for goods X and Y is income inelastic           O

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Goods X and goods Y are substitutes.

Step-by-step explanation

When Cross elasticity is positive therefore, it's substitute goods. When price of X rise as the effect demand for Y increases.

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