Suppose the Cross-Price Elasticity of Demand Between Quinces and Muskmelons

question 28

Multiple Choice

Suppose the cross-price elasticity of demand between quinces and muskmelons is 5.Which of the following must be true?

• A)Quinces are normal goods.
• B)Muskmelons are normal goods.
• C)If the price of quinces rises by $5, the demand for muskmelons will increase by 1.
• D)If the price of muskmelons rises by $5, the demand for quinces will increase by 1.
• E)Quinces and muskmelons are substitutes.

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Definitions:

Temporal Bone

A large bone situated at the base and side of the skull, which houses the structures of the ear.

Pinna

The external part of the ear that captures sound waves and directs them into the ear canal.

Visual Cortex

The region of the brain located in the occipital lobe that processes visual information received from the eyes.

Ganglion Cell Axons

Nerve fibers originating from ganglion cells in the retina, transmitting visual information from the eye to the brain.