Suppose the Cross-Price Elasticity of Demand Between Grapefruit Juice and Orange

question 100

Multiple Choice

Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6.This means that________.

• A)a 1 per cent decrease in the price of grapefruit juice leads to a 6 per cent increase in orange juice consumption.
• B)a 6 per cent increase in the price of grapefruit juice leads to a 1 per cent increase in orange juice consumption.
• C)if the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased.
• D)the demand for orange juice is 6 times more than the demand for grapefruit juice.

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Definitions:

Statement of Cash Flows

A financial report that depicts how variations in income and balance sheet accounts affect the cash and cash equivalents, organized into the segments of operating activities, investing activities, and financing activities.

Operating Activities

Activities that relate to the primary operations of a company, such as sales, provision of services, and production.

Indirect Method

This approach is used in cash flow statements to report net income and adjust it for changes in assets and liabilities that affect cash but are not cash transactions themselves.

Depreciated Equipment

Assets that have undergone depreciation to reflect the reduction in value due to wear and tear, age, or obsolescence.