- Created by: Sin Heng
- Created on: 12-12-19 09:43
1. What does it mean if the XED of a good is positive?
The good is a substitute.
2. What does it mean if the XED of a good is negative?
The good is a complimentary good.
3. If XED < 1, are consumers responsive?
No, consumers are irresponsive to the price change of good Y
4. What are the determinants of XED?
a) Substitutability- how easy it…