-Refer to the Above Table

question 229

Multiple Choice

-Refer to the above table. Suppose the price of B rises from $18 to $20. What is the cross price elasticity of demand between B and C?

• A) -1.7273
• B) -1.1176
• C) -0.8947
• D) +1.7273

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Definitions:

Mutual Assent

An agreement between parties that intend to form a contract, evidenced by an offer and acceptance.

Consideration

A value that is promised, given, or received by a party in a contract, making the agreement legally enforceable.

Justifiable Reliance

The reasonable trust placed by one party in the representations of another, particularly in situations leading to contracts or agreements.

Noncontractual Promise

An assurance or pledge not bound by a formal contract and generally not enforceable by law.