If the Cross-Price Elasticity Between Ketchup and Hamburgers Is -2

question 70

Multiple Choice

If the cross-price elasticity between ketchup and hamburgers is -2.5, a 2% increase in the price of ketchup will lead to a

• A)5% drop in quantity demanded of ketchup.
• B)5% 5% drop in quantity demanded of hamburgers.
• C)5% increase in quantity demanded of ketchup.
• D)5% increase in demanded of hamburgers.

---

Definitions:

Geographic Neighborhood

A specific area or region within a town, city, or rural area defined by geographic boundaries for purposes of analysis, planning, or identification.

Policy

In insurance law, the contract between the insurer and the insured.

Federal Question

A legal issue involving the interpretation of the U.S. Constitution, federal laws, or treaties.

Employment Contract

A legal document that specifies the terms and conditions of the relationship between an employer and an employee.