When the Price of Good X Increases by 10 Percent

question 113

Multiple Choice

When the price of Good X increases by 10 percent, the quantity demanded of Good Y increases by 25 percent. The cross elasticity between these two goods is

• A) 0.4 and they are complements.
• B) 2.5 and they are complements.
• C) 0.4 and they are substitutes.
• D) 2.5 and they are substitutes.

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Definitions:

Permissive

A parenting or management style characterized by low demands with high responsiveness.

Curfew Rules

Regulations that specify times during which certain individuals must remain indoors or in designated areas.

Self-Reliant

Having confidence in and exercising one's own powers or judgment; capable of thinking or acting independently.

Insecurely Attached

A term from attachment theory indicating a lack of a secure emotional bond between a child and their caregiver, often leading to difficulties in relationships.