Suppose That a 20 Percent Increase in the Price of Normal

question 241

Multiple Choice

Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline 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:

Action Potential

A quick electrical impulse that travels down a neuron's axon, triggering the release of neurotransmitters.

Repolarization Phase

A stage in the cardiac cycle following depolarization, where the heart muscle returns to its resting state by restoring the negative charge on the cell's membrane.

Neuromuscular Junction

The synapse or interface between a neuron and a muscle cell, allowing for the transmission of a nerve impulse to trigger muscle contraction.

Synaptic Vesicles

Small sacs located in nerve terminals that store neurotransmitters released during synaptic transmission.