If the Cross-Price Elasticity Between Good a and Good B

question 174

Multiple Choice

If the cross-price elasticity between Good A and Good B is -1.5 and the percentage change in quantity demanded of Good B is 15 percent,what is the percentage change in the price of Good A?

• A) -10 percent
• B) -0.10 percent
• C) -11.50 percent
• D) -1 percent
• E) 11.50 percent

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Definitions:

Regular Income

Earnings received by an individual or entity on a steady and predictable basis, often from employment or investments.

Automatic Stay

Under the Bankruptcy Act, the suspension of all litigation against the debtor and his property, which is triggered by the filing of a bankruptcy petition.

Alimony

Financial support paid by one ex-spouse to another after divorce or separation, as dictated by a court order or agreement.

Bankruptcy Petition

A legal document filed by an individual or business entity declaring their inability to pay outstanding debts, seeking relief through bankruptcy proceedings.