Scenario 5-2 Suppose the Demand Function for Good X Is Given By

question 124

Multiple Choice

Scenario 5-2
Suppose the demand function for good X is given by: where is the quantity demanded of good X, is the price of good X,and is the price of good Y,which is related to good X.
-Refer to Scenario 5-2.Using the midpoint method,if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8,the cross price elasticity of demand is about

• A)0.57,and X and Y are substitutes.
• B)-0.22,and X and Y are complements.
• C)-0.80,and X and Y are complements.
• D)-2.57,and X and Y are complements.

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Definitions:

Inhibits

To hinder, limit, or prevent a process or action, often used in the context of biological and chemical reactions.

One-Way Flow

A system or process in which a substance or object moves in a single direction without returning or recirculating.

Energy

The capacity to do work or cause physical change; energy, potential or kinetic, exists in many forms such as chemical, electrical, and mechanical.

Biological Systems

Complex networks of biologically relevant entities including organisms, their parts, and the processes that govern their interactions and functions.