Suppose the Price of Jelly Increases by 10 Percent and the Amount

question 4

Multiple Choice

Suppose the price of jelly increases by 10 percent and the amount of peanut butter purchased decreases by 20 percent. What is the cross-price elasticity of demand between these two goods?

• A) 0.5
• B) 2
• C) −0.5
• D) −2

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and accept the risks of a business venture in order to make a profit.

Ethical Decisions

Ethical decisions are choices made based on moral principles and values, aimed at doing what is right and beneficial for the majority, often involving considerations of fairness, justice, and respect for others.

Narrowly Defined

Describing something in a very specific, limited manner, often focusing on a small scope or detail.

Ethical Perspective

The consideration of moral principles and values in decision-making processes, often guiding an individual or organization's behavior.