If the Cross-Price Elasticity of Demand Between Good X and Good

question 73

Multiple Choice

If the cross-price elasticity of demand between Good X and Good Y is 0.4,then _____

• A)the demand for Good X is highly responsive to changes in the price of Good Y.
• B)a 10 percent increase in the price of Good Y leads to a 0.4 percent increase in the quantity demanded of Good X.
• C)a 10 percent decrease in the price of Good Y leads to a 4 percent decrease in the demand for Good Y.
• D)Good X and Good Y are complements.
• E)Good X is a normal good and Good Y is an inferior good.

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Definitions:

Longevity

The length of time an individual or entity has been in existence or operational, often used in the context of work tenure or product durability.

Defined Contribution Plans

Retirement plans in which employees contribute a fixed amount or percentage of their salaries, and the final benefits depend on the plan's investment performance.

Mandatory Benefits

Benefits that employers are legally required to provide to their employees, including social security, workers' compensation, and unemployment insurance.

Total Compensation

The complete pay package for employees, including all forms of money, benefits, services, and in-kind payments.