Scenario 5-2 Suppose the Demand Function for Good X Is Given By

question 124

Multiple Choice

Scenario 5-2
Suppose the demand function for good X is given by: where is the quantity demanded of good X, is the price of good X,and is the price of good Y,which is related to good X.
-Refer to Scenario 5-2.Using the midpoint method,if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8,the cross price elasticity of demand is about

• A)0.57,and X and Y are substitutes.
• B)-0.22,and X and Y are complements.
• C)-0.80,and X and Y are complements.
• D)-2.57,and X and Y are complements.

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Definitions:

External Cause

Factors outside an individual that can lead to certain outcomes or effects.

Consistent Behavior

A pattern of actions or responses that remains uniform over time in a particular individual or situation.

Attribution

The process of explaining one's own behavior and the behavior of others.

Assigning Causes

The process of attributing reasons or explanations to events, actions, or outcomes, often to understand or predict behavior.