A Cross Price Elasticity of Demand for Product with Respect

question 85

Multiple Choice

A cross price elasticity of demand for product with respect to the price of product of 0.3 means that

• A)an increase in the price of A by 10 percent gives rise to an increase in quantity demanded of B by 3 percent.
• B)an increase in the price of B by 10 percent gives rise to an increase in the quantity demanded of A by 3 percent.
• C)an increase in the price of B by 10 percent gives rise to a decrease in the quantity demanded of A by 3 percent.
• D)an increase in the price of A by 10 percent gives rise to a decrease in the quantity demanded of B by 3 percent.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality responsible for dealing with reality while satisfying the demands of the id and superego.

Strong Ego

In psychoanalytic theory, a well-balanced self that effectively manages the demands of the id, superego, and reality.

Inheritance

The process by which genetic information is passed from parents to offspring, influencing various traits and characteristics.

College Education

A post-secondary education program offering a broad knowledge base in various fields, leading to a degree or certificate.