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

question 112

Multiple Choice

Suppose the price of cereal increases by 10 percent and the amount of milk demanded decreases by 2 percent. What is the cross-price elasticity of demand between these two goods?

• A) 5
• B) −5
• C) 0.2
• D) −0.2

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Definitions:

Denialism

The choice to reject information or evidence that conflicts with an individual's beliefs, often seen in contexts such as climate change denial.

Cognitive Inertia

The tendency of certain cognitive processes or sets of beliefs to resist change, even in the face of new information or evidence.

Scientific Attitudes

The qualities and approaches necessary for effective scientific inquiry, including skepticism, openness to revision, and reliance on empirical evidence.

Brain-imaging Machines

Devices used to visualize the structure or function of the brain, such as MRI and CT scanners.