Suppose That a 20 Percent Increase in the Price of Normal

question 42

Multiple Choice

Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X.The coefficient of cross elasticity of demand is

• A)negative, and therefore these goods are substitutes.
• B)negative, and therefore these goods are complements.
• C)positive, and therefore these goods are substitutes.
• D)positive, and therefore these goods are complements.

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Definitions:

Ethnocentrism

The belief in the superiority of one's own ethnic group or culture, often accompanied by a devaluation of other cultures.

Communication Style

The characteristic way in which an individual or organization expresses ideas and exchanges information with others.

Culture

The arts, beliefs, and customs that are passed down from generation to generation within a society.

Stereotyping

The act of assigning generalized attributes to individuals based on their membership in a particular group, without acknowledging individual differences.