When the Price of Hamburger Went from $3 to $4

question 165

Multiple Choice

When the price of hamburger went from $3 to $4 a pound, the quantity demanded of buns changed from 30 to 25 packages a day. The cross-price elasticity of demand for hamburger using the initial value formula) is:

• A)1.4.
• B)0.6.
• C)-0.6.
• D)Not enough information to answer this question.

---

Definitions:

Observable Behavior

Actions or conduct that can be seen and measured externally, as opposed to thoughts or feelings that cannot be directly observed.

Desirable

Qualities or features that are attractive or sought-after in various contexts, such as products, traits, or outcomes.

Undesirable

A characteristic or condition deemed negative, unwanted, or harmful in a particular context.

Subjective

Based on or influenced by personal feelings, tastes, or opinions.