If a 1 Percent Increase in the Price of X

question 25

Multiple Choice

If a 1 percent increase in the price of X increases the quantity demanded of Y by 2 percent,then X and Y are

• A) complements and the cross elasticity of demand equals 2.
• B) substitutes and the cross elasticity of demand equals 1/2.
• C) substitutes and the cross elasticity of demand equals 2.
• D) complements and the income elasticity of demand equals 2.
• E) normal goods and the income elasticity of demand of each equals 2.

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Definitions:

Group Size

The number of members that constitute a defined group, influencing its dynamics and interactions.

Task Difficulty

Task difficulty refers to the level of challenge or effort required to complete a task successfully.

Accomplice

A person who actively participates in the commission of a crime, even if they take no part in the actual criminal offense.

Group Size

The number of individuals forming a cohesive social or working unit.