Suppose That When the Price of Good X Falls from $10

question 259

Multiple Choice

Suppose that when the price of good X falls from $10 to $8,the quantity demanded of good Y rises from 20 units to 25 units.Using the midpoint method,the cross-price elasticity of demand is

• A)-1.0,and X and Y are complements.
• B)-1.0,and X and Y are substitutes.
• C)1.0,and X and Y are complements.
• D)1.0,and X and Y are substitutes.

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Definitions:

Agonist

A chemical or drug that binds to receptors in the brain and causes a reaction typical of a naturally occurring substance.

Excitatory Neurotransmitter

A chemical substance that promotes the generation of an electrical signal in the receiving neuron.

Psychoneuroimmunology

An interdisciplinary field that studies the interactions between the nervous system and the immune system, and how psychological factors can affect physical health.

Psychological Factors

Pertains to the mental influences that affect an individual's behavior, emotions, and thoughts, including attitudes, beliefs, and motivation.