A negative value for the cross elasticity of demand between two goods indicates that
A) the goods are complements.
B) the goods are substitutes.
C) one of the goods is normal and the other is inferior.
D) each good is price inelastic.
Question 2
The amount of a tax paid by the buyers will be smaller the
A) more elastic the demand and the more inelastic the supply.
B) more inelastic the demand and the more elastic the supply.
C) more inelastic are both the supply and demand.
D) more elastic are both the supply and demand.
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