If the Price of Coke Rises by 5 Percent and the Sales

question 57

Multiple Choice

If the price of Coke rises by 5 percent and the sales of Pepsi go up by 10 percent,we can conclude that

• A)The sign on the cross-price elasticity will be negative.
• B)Both goods are normal goods.
• C)Both goods are substitute goods because the cross-price elasticity is +0.5.
• D)Both goods are substitute goods because the cross-price elasticity is +2.

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Definitions:

Standards for Behaviour

Established norms or criteria that guide acceptable and appropriate actions within a society or organization.

Individualistic Societies

Individualistic Societies prioritize the needs and goals of the individual over the collective, often resulting in a loose social framework where personal achievement and independence are valued.

Collective Societies

Cultures that prioritize the needs and goals of the group over the desires and success of individual members.

Tight Cultures

Societies or organizations that have strict norms and expectations with little tolerance for deviance.