Suppose That a 10 Percent Increase in the Price of Normal

question 366

Multiple Choice

Suppose that a 10 percent increase in the price of normal good Y causes a 5 percent decrease 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)positive, and therefore these goods are substitutes.
• C)negative, and therefore these goods are complements.
• D)positive, and therefore these goods are complements.

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Definitions:

Advanced Filter/Sort

A feature in database and spreadsheet software that allows users to apply complex filtering criteria and order data based on multiple attributes for detailed analysis.

Currency

A system of money in general use in a particular country, or the state of being widely accepted and used.

Square Root

A mathematical operation that finds a number which, when multiplied by itself, gives the original number.

Average

Average is a mathematical concept that represents the central value or a typical amount in a set of numbers, calculated by dividing the sum of all values by the number of values.