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:

Existential Orientation

A philosophical approach that emphasizes the existence of the individual as a free and responsible agent determining their own development through acts of the will.

Recover Fully

To completely regain health, strength, or a normal state after an illness, injury, or other setback.

Developed Countries

Nations with higher economic development based on factors such as income per capita, industrialization, standard of living, and stability.

Sociocultural Explanations

Theories that emphasize the impact of societal and cultural factors on individual behavior and mental processes.