If a rise in the price of good 1 decreases the quantity of good 2 ...

[tnt_battle]

If a rise in the price of good 1 decreases the quantity of good 2 demanded
 
  A) the cross elasticity of demand is negative.
  B) the cross elasticity of demand is positive.
  C) good 1 is an inferior good.
  D) good 2 is an inferior good.

Question 2

The small town of Narberth has two pizza stores. Which of the following statements are CORRECT?
 
  I. The profits of each store depend on the price of the pizza at the other store.
  II. Both stores would increase their profit if they cooperated in setting their prices.
  A) I only
  B) II only
  C) Both I and II
  D) Neither I nor II

[mk6555]

Answer to Question 1

A

Answer to Question 2

C

[tnt_battle]

Wow, this really help

[alexanderhamilton]

Thanks for the timely response, appreciate it