If a 1 Percent Increase in the Price of X

question 25

Multiple Choice

If a 1 percent increase in the price of X increases the quantity demanded of Y by 2 percent,then X and Y are

• A) complements and the cross elasticity of demand equals 2.
• B) substitutes and the cross elasticity of demand equals 1/2.
• C) substitutes and the cross elasticity of demand equals 2.
• D) complements and the income elasticity of demand equals 2.
• E) normal goods and the income elasticity of demand of each equals 2.

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Definitions:

Competition Tribunal

A specialized legal body or court responsible for adjudicating issues related to competition law and antitrust policies.

Rectification Order

A court order to correct or rectify a mistake within a document to reflect accurately what was originally intended.

Competition Commissioner

An official or an authority responsible for enforcing antitrust laws and promoting fair competition among businesses.

Competition Tribunal

A specialized court that deals with antitrust and competition law issues, often resolving disputes between competitors or allegations of unfair market practices.