If the Cross-Price Elasticity of Demand Between Fish and Chicken

question 3

Multiple Choice

If the cross-price elasticity of demand between fish and chicken is 2, then a 2% increase in the price of fish will result in a ________ in the quantity of chicken demanded.

• A) 1% increase
• B) 4% increase
• C) 10% increase
• D) 20% decrease

---

Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Supply and Demand

Fundamental economic concepts where supply represents how much the market can offer, and demand represents how much of a product or service is desired by buyers.

Supply and Demand

Economic principles stating that the price of a good is determined by its availability (supply) and consumers' desire to purchase it (demand).

Price of the Good

The amount of money required to purchase a specific product or service in the market.