The Cross-Price Elasticity of Demand Between Goods X and Y

question 126

Multiple Choice

The cross-price elasticity of demand between goods X and Y is −3.5.If the price of X decreases by 7 percent,the quantity demanded of Y will:

• A) decrease by 24.5 percent.
• B) decrease by 2.45 percent.
• C) increase by 24.5 percent.
• D) increase by 2.45 percent.

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Definitions:

Social Anxiety Disorder

An irrational, excessive fear of public scrutiny.

Hoarding Disorder

A persistent difficulty discarding or parting with possessions due to a perceived need to save them, resulting in clutter that disrupts living spaces and daily functioning.

Panic Disorder

A psychiatric disorder characterized by sudden and recurrent panic attacks, which are intense periods of fear or discomfort.

Generalized Anxiety Disorder

A chronic condition characterized by excessive, uncontrollable worry about everyday events, often without a specific cause.