If the Price of Cereal Changes by 10 Percent,we Observe

question 130

Multiple Choice

If the price of cereal changes by 10 percent,we observe a 2 percent change in the quantity of milk demanded.The cross-price elasticity of these goods is:

• A)5.
• B)-5.
• C)0.2.
• D)-0.2.

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Definitions:

Sod

A layer of earth in which the roots of grass are embedded, commonly used for lawns, golf courses, and sports fields to quickly establish a green surface.

Marginal Costs

The expense incurred from the production of one more unit of a product or service.

Average Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Grazing

The act of animals eating grass or other vegetation growing close to the ground.