Last Month,sellers of Good Y Took in $100 in Total

question 244

Multiple Choice

Last month,sellers of good Y took in $100 in total revenue on sales of 50 units of good Y.This month sellers of good Y raised their price and took in $120 in total revenue on sales of 40 units of good Y.At the same time,the price of good X stayed the same,but sales of good X increased from 20 units to 40 units.We can conclude that goods X and Y are

• A)substitutes,and have a cross-price elasticity of 0.60.
• B)complements,and have a cross-price elasticity of -0.60.
• C)substitutes,and have a cross-price elasticity of 1.67.
• D)complements,and have a cross-price elasticity of -1.67.

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Definitions:

John Berry

A psychologist known for his work in the fields of cross-cultural psychology and acculturation psychology, exploring how individuals adapt to changes in cultural environments.

Non-Western Countries

Nations or regions outside the cultural sphere of the Western world, often emphasizing differing social, economic, and cultural practices.

Terman

Lewis Terman was a psychologist who is best known for his revision of the Stanford-Binet IQ test and his studies in gifted children.

Gifted Children

Young individuals who demonstrate exceptionally high levels of aptitude or competence in one or more domains.