Suppose That When the Price of Good X Falls from $10

question 259

Multiple Choice

Suppose that when the price of good X falls from $10 to $8,the quantity demanded of good Y rises from 20 units to 25 units.Using the midpoint method,the cross-price elasticity of demand is

• A)-1.0,and X and Y are complements.
• B)-1.0,and X and Y are substitutes.
• C)1.0,and X and Y are complements.
• D)1.0,and X and Y are substitutes.

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Definitions:

Abstractly And Critically

Thinking in a way that is not tied to concrete realities and involves careful judgement and evaluation.

Postconventional

Pertains to a level of moral reasoning that is beyond social conventions, where actions are judged based on ethical principles rather than societal norms or expectations.

Cognitive Development

The process of growth and change in intellectual capabilities that occurs as people age, involving learning, memory, problem-solving, and decision-making.

Formal Operational

The stage of cognitive development in Piaget’s theory characterized by the ability to think logically about abstract concepts.