If goods A and B are complements, then A) the cross elasticity ...

[rl]

If goods A and B are complements, then
 
  A) the cross elasticity of demand between A and B is negative.
  B) the cross elasticity of demand between A and B is positive.
  C) their income elasticities of demand are both greater than 1.
  D) their income elasticities of demand are both less than 1.

Question 2

An example of an activity that generates an external cost is
 
  A) dumping soapsuds into a trout stream.
  B) national defense services.
  C) planting flowers along an interstate highway.
  D) eating an apple.

[Ksh22]

Answer to Question 1

A

Answer to Question 2

A