The Price of X Falls by Ten Percent, and the Quantity

question 277

Multiple Choice

The price of X falls by ten percent, and the quantity demanded of X increases by ten percent. Meanwhile, the quantity demanded of Y increases by ten percent too. We would conclude that

• A) demand for X is elastic, and X and Y are substitutes.
• B) demand for X is elastic, and X and Y are complements.
• C) demand for X is unit-elastic, and X and Y are complements.
• D) demand for X is inelastic, and X and Y are unrelated.

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Definitions:

Restricted

Being limited in movement, action, or activity, often by laws, rules, or circumstances.

Virtue Ethics

An ethical framework that emphasizes the role of character and virtue in moral philosophy rather than either doing one’s duty or acting to bring about good consequences.

Explicit Guidance

Direct, clear instructions or information about how to behave or what to do.

Particular Circumstance

A specific situation or set of conditions that distinguishes it from others; often requires tailored considerations or actions.