If the Cross-Price Elasticity Between Good a and Good B

question 104

Multiple Choice

If the cross-price elasticity between Good A and Good B is -1.5 and the percentage change in quantity demanded of Good B is 15%, what is the percentage change in the price of Good A?

• A) -10%
• B) -0.10%
• C) -11.50%
• D) -1%
• E) 11.50%

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Definitions:

Overall Quality

A general assessment or measure of the effectiveness, performance, or reliability of a product, service, or process.

Packaging

The process and design involved in protecting and enclosing products for distribution, storage, sale, and use.

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion.

Central Angle

An angle whose vertex is the center of a circle and whose sides pass through a pair of points on the circle.