When the Price of a Bicycle Falls from $220 to $180

question 149

Multiple Choice

When the price of a bicycle falls from $220 to $180 and other things remain the same, I. the quantity demanded of bicycles increases from 150 to 250 an hour.
II. the quantity demanded of skateboards decreases from 125 to 75 an hour.
III. the quantity demanded of bicycle helmets increases from 170 to 230 an hour.
Skateboards and bicycles are ________ because a fall in the price of a bicycle brings ________ in the quantity demanded of skateboards. The cross elasticity of demand for skateboards with respect to bicycles is ________.

• A)complements; an increase; -0.4
• B)complements; a decrease; 0.4
• C)substitutes; an increase; -2.5
• D)substitutes; a decrease; 2.5
• E)substitutes; a decrease; 0.4

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Definitions:

Sex-specific BMI

Body mass index calculated or interpreted differently based on biological sex, acknowledging physiological differences that may affect health assessments.

Growth Charts

Tools used to track the growth of children over time, comparing their weight, height, and head circumference against standardized norms.

Age Cohort

A group of individuals who share similar birth years and, consequently, tend to have comparable experiences, attitudes, and life stages.

Social Distinctions

The differentiation of people into categories based on characteristics such as class, ethnicity, or gender, often leading to unequal treatment or access to resources.