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:

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Racism

Bias, unfair treatment, or hostility towards individuals of another race, stemming from the conviction that one's own race is superior.

South Asian Americans

A demographic group in the United States consisting of individuals of South Asian descent, which includes countries like India, Pakistan, Bangladesh, Nepal, Sri Lanka, Bhutan, and the Maldives.

U.S. Census

A decennial survey conducted by the United States that counts every resident in the country, collecting demographic, economic, and housing data.