Suppose That a 7 Percent Increase in the Price of Normal

question 266

Multiple Choice

Suppose that a 7 percent increase in the price of normal good Y causes a 4 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)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:

Collaborative Orientation

An approach or attitude towards work that involves working together with others towards a common goal or objective.

Mutually Beneficial Solution

A resolution to a problem or negotiation that provides advantages or positive outcomes to all parties involved.

Superordinate Goals

Shared goals that override differences among people and require their cooperation.

Department Representatives

Individuals chosen or assigned to speak or act on behalf of their department within an organization, often in decision-making or coordination roles.