Suppose That the Quantity of Apples Sold Increases by 30

question 241

Multiple Choice

Suppose that the quantity of apples sold increases by 30 percent after the price of pears increases by 15 percent. What is the coefficient of cross elasticity of demand?

• A) 3.0.
• B) 1.5.
• C) 0.2.
• D) 2.0.
• E) 0.3.

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Definitions:

Opportunities

Situations where it's possible to perform an action that could lead to an improvement in one's situation.

Rational Employers

Employers who make hiring and firing decisions based on the optimization of productivity and cost-effectiveness.

Margin

The difference between the selling price of a product and the cost of producing it, often expressed as a percentage of the selling price.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.