Which of the following statements is true of the cross-price elasticity of demand?
A) The cross-price elasticity of demand between substitutes is zero.
B) The cross-price elasticity of demand between complements is zero.
C) The cross-price elasticity of demand between substitutes is negative.
D) The cross-price elasticity of demand between complements is negative.
Question 2
An increase in the minimum wage for unskilled labor tends to
A) generate unemployment among unskilled laborers.
B) increase the quantity supplied of unskilled laborers.
C) decrease the quantity demanded for unskilled laborers.
D) encourage employers to seek substitutes for unskilled labor.
E) accomplish all of the above.
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