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:

Fetal Heartbeat

The heart rate of a fetus, which can typically be detected by ultrasound as early as 5-6 weeks of pregnancy.

Stethoscope

A medical instrument for listening to the action of someone's heart or breathing.

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A medical professional trained to diagnose, treat, and prevent illnesses, and provide patient care.

Month

A unit of time, typically used in calendars, that roughly corresponds to the period required for the moon to orbit the Earth.