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:

Demand Payment

A formal request for the payment of owed money.

Endorse

To give public approval or support to something or someone.

Holder In Due Course

A legal term referring to a person who acquires a negotiable instrument in good faith and has the right to collect it free from any defects.

Provide Value

The act of offering products, services or actions that are beneficial or of worth to customers, stakeholders, or society at large.