Suppose the Price of X Increases by 20 Percent While

question 161

Multiple Choice

Suppose the price of X increases by 20 percent while the quantity demanded of Y does not change. We would conclude that

• A) the two goods are substitutes, but the cross elasticity of demand is not large.
• B) the two goods are complements, but the cross elasticity of demand is not large.
• C) the two goods are perfect substitutes.
• D) the two goods are not related.

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Definitions:

Forgetting

Forgetting is the process through which information is lost from memory over time, which can occur due to various reasons such as failure to retrieve, interference, or decay of memory traces.

Fades With Time

The process of something becoming less intense, visible, or relevant as time passes.

Source Misattribution

The inability to distinguish an actual memory of an event from information you learned about the event elsewhere.

Actual Memory

The true and accurate recollection of past events, as opposed to reconstructed or imagined memories.