The Price of Peanut Butter Decreases

question 18

Multiple Choice

The price of peanut butter decreases. As a result, the price of jelly (a complement to peanut butter) rises by 5 percent and the quantity of jelly sold rises by 10 percent. What can we conclude from this information?

• A) The cross-price elasticity between peanut butter and jelly equals 0.5.
• B) The elasticity of demand equals 2.0.
• C) The elasticity of supply equals 2.0.
• D) The cross-price elasticity between peanut butter and jelly equals 2.0.

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Definitions:

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the rest of the body.

Pigment

A substance that imparts color to other materials, found in paint, ink, plants, and the human body.

Blood

A vital fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away.

Clotting Factors

Proteins in the blood that work together to form a blood clot, stopping bleeding and aiding in wound healing.