If There Is an Increase in the Price of Broccoli

question 309

Multiple Choice

If there is an increase in the price of broccoli because of disastrous weather that destroys about half of this year's spinach crop, which of the following could be TRUE?

• A) The cross elasticity of demand between spinach and broccoli is negative 1.25.
• B) The demand curve for broccoli has shifted rightward and the cross elasticity of demand between spinach and broccoli is positive.
• C) The demand curve for spinach has shifted to the leftward and the cross elasticity of demand between spinach and broccoli is positive.
• D) The demand curves for spinach and broccoli have become more cross inelastic.

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Definitions:

Regression Model

A statistical technique used to predict the value of a dependent variable based on one or more independent variables.

Odds Ratio

A statistic that quantifies the strength of the association between two events, comparing the odds of an event occurring in one group to the odds of it occurring in another group.

Probability

A mathematical measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Dependent Variable

A variable in an experiment or study that is dependent on other variables, typically the outcome or effect being measured.