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:

Retina

The light-sensitive layer of tissue at the back of the eye that converts light images into electrical signals sent to the brain.

Eye Shape

The form or appearance of the human eye, which can vary widely among individuals, including aspects such as size, spacing, and the curvature of the lid.

Gustatory Cortex

An area of the brain that is responsible for interpreting taste sensations by integrating information from the taste cells with other information to provide a more complete interpretation.

Taste Sensations

The experiences of flavor perceived by the taste buds, including sweet, sour, salty, bitter, and umami.