If the Quantity of Tea Demanded Increases by 2% When

question 30

Multiple Choice

If the quantity of tea demanded increases by 2% when the price of coffee increases by 8%, the cross- price elasticity of demand between tea and coffee is:

• A) 4
• B) - 25
• C) - 4
• D) 0.25

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Definitions:

Harm-Reduction Approach

A strategy aimed at minimizing the negative health, social, and legal impacts associated with various human behaviors, without necessarily eliminating the behaviors.

Sponsorship

The provision of support, resources, or funding to an individual or event by an organization or individual, often for promotional purposes.

Contingency Management

A behavior modification technique that rewards positive behavior or punishes negative behavior to enhance motivation and encourage changes in behavior.