The Cross Elasticity of Demand for Strawberry Jelly and Grape

question 53

Multiple Choice

The cross elasticity of demand for strawberry jelly and grape jelly is likely to be

• A) positive because they are substitutes.
• B) positive because they are complements.
• C) negative because they are substitutes.
• D) negative because they are complements.
• E) negative because they are inferior goods.

---

Definitions:

Half-Life

Half-life is a term used in nuclear physics and chemistry to describe the time required for one half of the atoms of a radioactive substance to undergo decay.

Growth Model

A mathematical representation used to describe how a quantity changes over time.

Population

The whole number of people or inhabitants in a country or region.

Compounded Continuously

A method of calculating interest where the interest amount is constantly added to the principal, leading to exponential growth.