1. The larger the positive cross elasticity coefficient of demand between products A and B, the:

A. Stronger their complementariness.

B. Greater their substitutability.

C. Smaller the price elasticity of demand for both products.

D. The less sensitive purchases of each are to increases in income.

2. We would expect the cross elasticity of demand between Skippy and Jif peanut butter to be:

A. Positive, indicating normal goods.

B. Positive, indicating inferior goods.

C. Positive, indicating substitute goods.

D. Negative, indicating substitute goods.