Question : If the cross elasticity of demand between two goods is zero, it means the goods are:

Option 1: Substitutes.

Option 2: Complements.

Option 3: Independent.

Option 4: Normal goods.

Question : If the cross elasticity of demand between two goods is negative, it means the goods are:

Option 1: Substitutes.

Option 2: Complements.

Option 3: Inferior goods.

Option 4: Normal goods.

Question : The cross elasticity of demand between CocaCola and PepsiCola is ________ so Coke and Pepsi are ________.

Option 1: Positive; complements

Option 2: Negative; substitutes

Option 3: Negative; complements

Option 4: Positive; substitutes

Question : If two commodities are complements, then their cross-price elasticity is

Option 1: zero

Option 2: positive

Option 3: negative

Option 4: imaginary number

Question : The cross elasticity of demand assesses how responsively a certain good's quantity desired is to changes in its prices.

Option 1: Its complements but not its substitutes.

Option 2: It's a substitute but not its complement.

Option 3: Its substitutes and complements

Option 4: Neither its substitutes nor its complements