A Fall in the Price of X from $6 to $4

question 162

Multiple Choice

A fall in the price of X from $6 to $4 results in an increase in the quantity of Y demanded (at the current price of Y) from 900 to 1,100 units. What is the cross elasticity of demand between X and Y?

• A)0.5
• B)-0.5
• C)2
• D)-2
• E)Either A or B, depending on whether X and Y are substitutes or complements.

Comprehend the significance and calculation of earnings per share for a corporation.

Distinguish between different types of stock within the Stockholders' equity section and their reporting.

Calculate basic earnings per share and understand the effect of preferred dividends.

Recognize the accounting treatment and financial statement presentation of the sale and purchase of treasury stock.