Suppose That a 10 Percent Increase in the Price of Normal

question 38

Multiple Choice

Suppose that a 10 percent increase in the price of normal good Y causes a 20 percent increase in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is

• A)negative, and therefore these goods are substitutes.
• B)negative, and therefore these goods are complements.
• C)positive, and therefore these goods are substitutes.
• D)positive, and therefore these goods are complements.

---

Definitions:

Retina

A light-sensitive layer at the back of the eye that converts light into neural signals for visual processing by the brain.

Gestalt Psychologists

Psychologists who focus on human perception and cognitive processes, emphasizing the whole is greater than the sum of its parts.

Complex Pattern

A configuration of elements that are intricately entwined, making it complicated to understand, predict, or analyze.

Perception

The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.