When the Price of Pens Went from $1 to $1

question 31

Multiple Choice

When the price of pens went from $1 to $1.50, the quantity demanded of pencils changed from 50 to 75 a day. The cross-price elasticity of demand for pencils (using the initial value formula) is

• A) 1.
• B) 0.4.
• C) 0.2.
• D) -0.2.

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Definitions:

Salivary Gland

Glands located in the mouth that produce saliva, which aids in digestion and keeps the mouth moist.

Muscularis Externa

The layer of muscle in the gastrointestinal tract located outside the submucosa, responsible for the movements of peristalsis and segmentation.

Hepatopancreatic Duct

A duct that carries bile from the liver and pancreatic juice from the pancreas into the duodenum.

Common Bile Duct

A duct that carries bile from the liver and gallbladder to the duodenum, important in digestion.