If the Price of a Good Increases by 20% and the Quantity

question 63

Multiple Choice

If the price of a good increases by 20% and the quantity demanded of its complement falls by 18%, the cross-price elasticity for the two goods is _____.

• A) 1
• B) 0.9
• C) 1.1
• D) 2

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Definitions:

Core Competencies

The main strengths or strategic advantages of a business, including the combination of pooled knowledge and technical capacities.

Sustainable Competitive Advantage

A long-term advantage over competitors achieved by offering greater value to consumers, not easily replicable.

Numbered Section

A part of a document or publication that is designated and organized by numbers for easy reference.

Readability

The ease with which a reader can understand and interpret text, often influenced by writing style and layout.