When the cross price elasticity between good X and other related goods is positive and very low,firm X can be assumed to have:
A)minimal market power.
B)moderate market power.
C)a significant amount of market power.
D)virtually no market power.

Question

Quizplus · Accepted Answer

A positive and very low cross-price elasticity between good X and other related goods indicates that consumers do not see the other goods as close substitutes for good X. This implies that firm X faces little competition from these goods, suggesting that it has a significant amount of market power.

When the Cross Price Elasticity Between Good X and Other