Scenario 5-2 Suppose the Demand Function for Good X Is Given By

question 124

Multiple Choice

Scenario 5-2
Suppose the demand function for good X is given by: where is the quantity demanded of good X, is the price of good X,and is the price of good Y,which is related to good X.
-Refer to Scenario 5-2.Using the midpoint method,if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8,the cross price elasticity of demand is about

• A)0.57,and X and Y are substitutes.
• B)-0.22,and X and Y are complements.
• C)-0.80,and X and Y are complements.
• D)-2.57,and X and Y are complements.

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Definitions:

Prokaryotes

Unicellular organisms lacking a distinct nucleus and other organelles, divided into the domains Bacteria and Archaea.

Eukaryotes

Organisms whose cells contain a nucleus enclosed within membranes, distinguishing them from prokaryotic cells, which lack a membrane-bound nucleus.

Multicellular

Organisms that are made up of more than one cell, including a vast majority of lifeforms from plants and animals to fungi.

Terrestrial

Pertaining to land or earth, describing organisms that live and thrive on solid ground, as opposed to aquatic or aerial environments.