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JAMB Economics 2019 past questions and answers

1 questions. Try each one, then open the answer to check yourself and read the explanation.

Question 29

Elasticity

For two substitute goods, the cross elasticity of demand is

  1. A.infinity
  2. B.positive
  3. C.zero
  4. D.negative.
Show the answer and explanation

Answer: B (positive)

Explanation

If the price of one substitute rises, demand for the other rises, so cross elasticity is positive.

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