If the Cross-Price Elasticity Between Ketchup and Hamburgers Is −1

question 128

Multiple Choice

If the cross-price elasticity between ketchup and hamburgers is −1.2,a 4 percent increase in the price of ketchup will lead to a 4.8 percent:

• A) drop in quantity demanded of ketchup.
• B) drop in quantity demanded of hamburgers.
• C) increase in quantity demanded of ketchup.
• D) increase in quantity demanded of hamburgers.

---

Definitions:

Self-interest

The consideration of one's own advantage or benefit, often driving behavior and decisions with the primary focus on personal gain.

Political Economist

An expert or scholar who studies the relationship between politics and the economy, including how political institutions, processes, and decisions affect economic policies and conditions.

Moral Philosopher

A scholar or thinker who specializes in ethical theory and questions of right and wrong, good and bad, virtue and vice, justice, and other moral concepts.

Interaction

The reciprocal action or influence between two or more entities, typically in a social or professional context.