The Percentage Change in the Quantity Demanded of Good X

question 190

Multiple Choice

The percentage change in the quantity demanded of good X is 20 percent and the percentage change in the price of good Y is 10 percent. It follows that the __________ elasticity of demand is __________ and that the two goods are __________.

• A)income; 0.50; substitutes
• B)cross; 2.00; complements
• C)cross; 0.50; substitutes
• D)cross; 2.00; substitutes
• E)price; 2.00; substitutes

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Definitions:

Conscious Processing

The deliberate and aware mental activities and thought processes involved in perception, decision-making, and problem-solving.

Knowledge Structures

Organized packets of information that are stored in memory.

Stroop Test

A psychological test that demonstrates the difficulty of naming the color of text when the word itself is a different color.

Automatic Processing

Cognitive operations that occur without conscious thought or intention, often quickly and efficiently.