When the Price of Bread Increases by 3 Percent, the Quantity

question 73

Multiple Choice

When the price of bread increases by 3 percent, the quantity demanded of crackers increases by 2 percent. The cross elasticity of demand between crackers and bread is:

• A) 0.67.
• B) 1.5.
• C) 2.5.
• D) 3.2.

---

Definitions:

Formally Enacted

A term referring to policies, laws, or rules that have been officially written and adopted through formal procedures.

Laws

Are norms that are codified and enforced by the state.

Social Interaction

Is the process by which role performers act in relation to others.

Community Norms

The shared expectations and rules that guide behavior of people within social groups.