Suppose the Cross- Elasticity of Demand Between Two Goods, X

question 22

Multiple Choice

Suppose the cross- elasticity of demand between two goods, X and Y, is negative. If the price of X decreases, the quantity demanded will

• A) not change.
• B) fall for both goods.
• C) fall for X and rise for Y.
• D) rise for both goods.
• E) rise for X and fall for Y.

---

Definitions:

Hard-Of-Hearing

A partial loss of hearing ranging from slight to severe, often requiring enhanced communication methods or devices.

High-Pitched

Describes a tone that is very sharp or has a very high frequency.

Frequency Theory

In hearing, the theory that the rate of nerve impulses traveling up the auditory nerve matches the frequency of a tone, thus enabling us to sense its pitch. (Also called temporal theory.)

Place Theory

A theory explaining how sound frequency is encoded in the cochlea of the inner ear, suggesting that specific places along the basilar membrane respond to specific frequencies.