When the Price of a Pizza Is $10,the Quantity of Soda

question 280

Multiple Choice

When the price of a pizza is $10,the quantity of soda demanded is 300 drinks.When the price of a pizza is $15,the quantity soda demanded is 100 drinks.The cross elasticity of demand is equal to

• A) -0.25.
• B) -0.40.
• C) -2.50.
• D) -25.00.
• E) 4.00.

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Definitions:

Right of Refusal

A contractual right that gives an individual or entity the opportunity to enter a business transaction with another party before anyone else can.

Perfect Tender Rule

The requirement that a seller deliver goods in conformity with the contract, down to the last detail.

Rigidity

The quality of being unable to bend or be forced out of shape; lack of flexibility or adaptability.

Honesty in Fact

The genuine belief or actual state of mind devoid of intent to deceive or defraud.