If the Cross Elasticity of Demand Between Coffee and Tea

question 13

Multiple Choice

If the cross elasticity of demand between coffee and tea is positive, an increase in the price of tea will shift the demand curve for

• A) tea rightward.
• B) tea leftward.
• C) coffee rightward.
• D) coffee leftward.

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Definitions:

Mentally Rotate

The cognitive ability to imagine an object turning in space, often tested in spatial visualization tasks.

Fluid Intelligence

The intelligence quotient derived from tests involving tasks that require reasoning but not prior knowledge.

Crystallized Intelligence

The intelligence quotient derived from tests involving knowledge-based questions.

Spatial Intelligence

The intelligence quotient derived from tests of the ability to mentally rotate objects in order to solve problems.