Suppose the Cross-Price Elasticity Between Demand for Chipotle Burritos and the Price

question 47

Multiple Choice

Suppose the cross-price elasticity between demand for Chipotle burritos and the price of Qdoba burritos is 0.8.If Qdoba increases the price of its burritos by 10%:

• A)Chipotle will sell 10% more burritos.
• B)Chipotle will sell 8% more burritos.
• C)Chipotle will sell 8% fewer burritos.
• D)We cannot tell what will happen to Chipotle,but Qdoba will sell 8% fewer burritos.

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Definitions:

Stimulus-Response

A concept in psychology that describes a specific stimulus leading to a particular response in an organism.

Behaviourism

This is a theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing external behaviors rather than internal processes.

Internal States

Refers to the mental and emotional conditions or processes within an individual, such as feelings, thoughts, and mood, that are not observable by others.

B. F. Skinner

An American psychologist known for his work in behaviorism and for developing the theory of operant conditioning.