If cross-price elasticity between goods A and B is determined to be exactly zero, which of the following statements is correct?

CA Foundation · Business Economics · MTP · June 2024
If cross-price elasticity between goods A and B is determined to be exactly zero, which of the following statements is correct?
(A) A. Goods A and B are substitutes
(B) B. Goods A and B are complements
(C) C. Goods A and B are comparatives
(D) D. Goods A and B are independent

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Goods A and B are independent

Topics: Theory of Demand and Supply

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