Suppose That a 10 Percent Increase in the Price of Normal

question 105

Multiple Choice

Suppose that a 10 percent increase in the price of normal good Y causes a 20 percent increase in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is

• A) negative, and therefore these goods are substitutes.
• B) negative, and therefore these goods are complements.
• C) positive, and therefore these goods are substitutes.
• D) positive, and therefore these goods are complements.

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Definitions:

Denial

A defense mechanism where an individual refuses to accept reality or facts, thereby avoiding facing uncomfortable truths.

Psychological Protections

Mechanisms or strategies used by individuals to defend themselves against perceived threats to their emotional well-being or self-esteem.

Identity Crisis

A period of uncertainty and confusion in which a person's sense of identity becomes insecure, often leading to a reassessment of values and direction in life.

Personal Responsibility

The notion that individuals are accountable for their own actions and decisions.