When the Price of Bread Increases by 3 Percent, the Quantity

question 41

Multiple Choice

When the price of bread increases by 3 percent, the quantity demanded of crackers increases by 2 percent. The cross elasticity of demand between crackers and bread is:

• A) 0.67.
• B) 1.5.
• C) 2.5.
• D) 3.2.
• E) 5.0.

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Definitions:

Conservation Easements

Legal agreements that permanently limit uses of land in order to protect its conservation values, used by landowners to preserve natural or historic resource values.

Subsidizing Farmers

The practice of providing financial assistance to farmers by the government to encourage agricultural production and ensure food security.

Political Jurisdictions

Defined areas under the authority of certain governmental entities where specific laws, regulations, and powers are applied and enforced.

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often characterized by low-density residential development, increased reliance on personal vehicles, and loss of natural habitats.