If a 1 Percent Decrease in the Price of Product

question 129

Multiple Choice

If a 1 percent decrease in the price of product A brings about a 3 percent increase in the sales of product B, then:

• A) products A and B are complementary.
• B) the cross elasticity of demand between these two products is positive.
• C) products A and B are substitutes.
• D) the demand for these products is inelastic.

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Definitions:

Motivated Forgetting

The process through which individuals unconsciously or consciously block out painful or unwanted memories.

Jenkins and Dallenbach

Researchers known for their study on the effects of sleep on memory retention, demonstrating that sleep can protect memories from interference.

Nonsense Syllables

A string of letters that do not form a known word, used in psychological experiments on memory.

Forgetting

Forgetting is the process through which information is lost from memory, whether through decay over time, lack of retrieval cues, interference, or failure to store in memory.