-The Increase in the Demand for Widgets, Shown in the Figure

question 374

Multiple Choice

-The increase in the demand for widgets, shown in the figure above, is the result of a decrease in the price of McBoover devices from $11 to $9. Therefore, the cross-price elasticity for these two products is

• A) -2.0.
• B) -0.5.
• C) 0.5.
• D) 2.0.

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Definitions:

Business Organizations

Entities set up to carry out commercial enterprises, including corporations, partnerships, and sole proprietorships.

Ethical Issue

An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical.