The Cross-Price Elasticity of Demand for Books and Magazines Is

question 56

Multiple Choice

The cross-price elasticity of demand for books and magazines is −2.0.If the price of magazines decreases by 10 percent,the quantity demanded of books will:

• A) fall by 2.0 percent.
• B) rise by 2.0 percent.
• C) fall by 20 percent.
• D) rise by 20 percent.

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Definitions:

Machiavellianism

A personality characteristic involving one’s willingness to do whatever it takes to get one’s own way.

Discord

A lack of agreement or harmony between people or things, often resulting in conflict or disorder.

Cognitive Component

A part of an attitude that encompasses the beliefs, thoughts, and attributes that we have about an object or situation.

ABC Model

A cognitive-behavioral model that describes the relationship between activating events, beliefs, and consequences in understanding human behavior.