A Rise in the Price of Butter from $3 to $5

question 23

Multiple Choice

A rise in the price of butter from $3 to $5 per kilogram causes the quantity demanded of margarine to increase from 100 000 to 200 000 kilograms.The numerical value of the cross-price elasticity between these two goods is therefore:

• A)-0.75
• B)0.75
• C)1.33
• D)1.50
• E)-1.33

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Definitions:

Thematic Apperception Test

A projective psychological test involving a series of ambiguous images presented to an individual, who is then asked to tell a story about each image.

Source Trait

Fundamental personality traits identified through factor analysis that underpin and contribute to surface behaviors and attitudes.

Rorschach

A psychological test in which subjects' perceptions of inkblots are analyzed to examine personality characteristics and emotional functioning.

Thematic Apperception Test

A psychological assessment tool where respondents reveal their underlying motives, concerns, and the way they see the social world through the stories they make up about ambiguous pictures of people.