If the Quantity of Peanut Butter Demanded Increases by 4

question 24

Multiple Choice

If the quantity of peanut butter demanded increases by 4% when the price of jelly decreases by 2%, the cross-price elasticity of demand between peanut butter and jelly is

• A) -4.
• B) -2.
• C) -0.5.
• D) 2.

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Definitions:

Stock Split

A company's action to chop up its existing stock into more pieces to make the shares easier to trade.

Owners' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders in the company.