Suppose That When the Price of Good X Increases from $600

question 50

Multiple Choice

Suppose that when the price of good X increases from $600 to $720, the quantity demanded of good Y decreases from 67 to 15. Using the midpoint method, the cross-price elasticity of demand is about

• A)6.98, and X and Y are substitutes.
• B)-0.14, and X and Y are complements.
• C)0.14, and X and Y are substitutes.
• D)-6.98, and X and Y are complements.

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Definitions:

Buffet

A meal serving style where a variety of dishes are displayed, and diners serve themselves according to their preference.

Diverse Foods

A wide variety of foods from different cultures, ingredients, and culinary traditions.

Snacks

Small portions of food typically consumed between regular meals, often to satisfy temporary hunger or for enjoyment.

Strategy

A plan of action designed to achieve a long-term or overall aim, often used in contexts ranging from business to personal goals.