The Cross-Price Elasticity Between Good X and Good Y Is

question 35

Multiple Choice

The cross-price elasticity between good X and good Y is positive. Other things being equal, if the price of X rises

• A) quantity of Y demanded decreases.
• B) quantity of Y demanded increases.
• C) a consumer spends more on good Y than on good X.
• D) a consumer spends more on good X than on good Y.

---

Definitions:

Internal Locus

A psychological concept indicating that individuals believe they have control over the events in their lives.

Destiny

A predetermined course of events often considered to be an irresistible power or agency.

Franchise Outlet

A retail location operating under a licensed brand or business model granted by the franchisor.

Self-employed Service

A business model where individuals offer their skills and services directly to clients without being employed by a company, often requiring entrepreneurship and independence.