If the Cross-Price Elasticity Between Good a and Good B

question 104

Multiple Choice

If the cross-price elasticity between Good A and Good B is -1.5 and the percentage change in quantity demanded of Good B is 15%, what is the percentage change in the price of Good A?

• A) -10%
• B) -0.10%
• C) -11.50%
• D) -1%
• E) 11.50%

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Definitions:

Eros

In John Lee’s typology of love, the love of beauty.

Passionately

With intense, strong feelings or emotions, often used to describe romantic or sexual feelings.

Physical Beauty

The aesthetic appeal or attractiveness of an individual, often based on societal standards.

Mania

An emotional state characterized by elevated mood, energy, and activity levels, often associated with bipolar disorder.