Suppose the Cross-Elasticity of Demand for Two Goods,domestic Cheese and Imported

question 96

Multiple Choice

Suppose the cross-elasticity of demand for two goods,domestic cheese and imported cheese,is positive.If the price of imported cheese falls,then quantity demanded will

• A)rise for both domestic and imported cheese.
• B)fall for both domestic and imported cheese.
• C)rise for domestic cheese and fall for imported cheese.
• D)fall for domestic cheese and rise for imported cheese.
• E)There is not enough information to answer this question.

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Definitions:

Benzonitrile

An organic compound with the formula C7H5N, consisting of a benzene ring attached to a nitrile group.

Benzene

An aromatic hydrocarbon with a molecular formula C6H6, known for its ring structure consisting of six carbon atoms linked by alternating single and double bonds.

Synthesis

The process of combining two or more entities to form something new, often referring to the chemical creation of a compound.

Organic Product

A substance resulting from the chemical reactions of organic compounds, often used in various industries.