If the Quantity of Pineapples Demanded Increases by 4% When

question 41

Multiple Choice

If the quantity of pineapples demanded increases by 4% when the price of papayas increases by 16%, the cross-price elasticity of demand between pineapples and papayas is

• A) -4.
• B) 0.25.
• C) 4.
• D) 64.

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Definitions:

Nutrition Labeling

Information provided on food packaging that details the nutrient content, such as calories, fats, vitamins, and minerals.

Externality

An economic term referring to a cost or benefit that affects a party who did not choose to incur that cost or benefit, often leading to market failure.

External

Pertaining to elements or influences originating outside a system or entity.

Public Goods

Goods or services that are available to all members of society, characterized by non-excludability and non-rivalry in consumption.