The Cross Elasticity of Demand for Good a with Respect

question 1

Multiple Choice

The cross elasticity of demand for good A with respect to the price of good B is -1.5.A 10 percent rise in the price of good B will lead to

• A)an increase of 1.5 percent in the quantity of A demanded.
• B)an increase of 15 percent in the quantity of A demanded.
• C)a decrease of 15 percent in the quantity of A demanded.
• D)an increase of 6.7 percent in the quantity of A demanded.
• E)a decrease of 6.7 percent in the quantity of A demanded.

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Definitions:

Phosphorus Cycle

The worldwide circulation of phosphorus from the abiotic environment into living things and back into the abiotic environment.

Nitrogen-Fixing Bacteria

Bacteria capable of converting atmospheric nitrogen into organic compounds usable by plants.

Gaseous Nitrogen

Nitrogen in its gaseous state, making up about 78% of the Earth's atmosphere, and is chemically inert under most conditions.

Ammonia

A colorless gas with a characteristic pungent smell, consisting of nitrogen and hydrogen (NH3), used in various industrial processes and as a fertilizer.