PRC-3 · Chapter 11 · Question 52 of 57
If the Cross Elasticity of Demand between Product X and Product Y is exactly zero, what is the economic relationship between the two products?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) They are completely unrelated independent goods
Explanation
A cross elasticity of zero means a change in the price of one good has absolutely no effect on the demand for the other, indicating they are totally unrelated.
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