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.

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