Suppose the Cross-Elasticity of Demand for Two Goods,domestic Cheese and Imported

question 96

Multiple Choice

Suppose the cross-elasticity of demand for two goods,domestic cheese and imported cheese,is positive.If the price of imported cheese falls,then quantity demanded will

• A)rise for both domestic and imported cheese.
• B)fall for both domestic and imported cheese.
• C)rise for domestic cheese and fall for imported cheese.
• D)fall for domestic cheese and rise for imported cheese.
• E)There is not enough information to answer this question.

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Definitions:

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Avoidance behaviors are actions taken to prevent or evade a perceived threat or discomfort, often seen in anxiety and other psychological conditions.

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In psychology, the process by which a conditioned response decreases in frequency and eventually disappears.

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An anxiety disorder involving intense fear and avoidance of situations where escape might be difficult or help might not be available, often leading to avoidance of public places.

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