If the Cross Elasticity of Demand Between Peanut Butter and Jelly

question 61

Multiple Choice

If the cross elasticity of demand between peanut butter and jelly is negative,then

• A)a rise in the price of peanut butter results in a rise in the equilibrium price of jelly.
• B)a rise in the price of peanut butter results in a fall in the equilibrium price of jelly.
• C)a rise in the price of peanut butter has no effect on the equilibrium price of jelly.
• D)a fall in the price of peanut butter results in a fall in the equilibrium price of jelly.
• E)peanut butter and jelly are substitutes.

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Definitions:

Production

The process of creating goods and services, involving labor, materials, tools, and machinery.

Materials Requisitions

A document used to request or withdraw materials from inventory for production or other internal uses.

Storeroom

A room or space used for storing inventory, materials, or equipment.

Factory

A structure or set of structures where products are primarily constructed or compiled through the use of machines.