When the price of pens went from $1 to $1.50, the quantity demanded of pencils changed from 50 to 75 a day. The cross-price elasticity of demand for pencils (using the initial value formula) is:

A. 1.
B. 0.4.
C. 0.2.
D. -0.2.


Answer: A

Economics

You might also like to view...

When ________ in a market, the total net benefit to society is maximized

A) deadweight loss is maximized B) a competitive equilibrium is achieved C) consumer surplus is minimized D) producer surplus is minimized

Economics

A barter economy is one in which:

A. money serves as a medium of exchange. B. only precious metals are accepted as money. C. goods are traded directly for other goods. D. paper money is backed by gold.

Economics

Economic growth, as measured by increases in per-capita real GDP, was at its strongest during the

A. 1970s. B. 1960s. C. 1980s. D. 1950s.

Economics

According to your authors, the prohibition on alcohol in the U.S. primarily shifted the ________ curve to the ________

A) supply; right B) supply; left C) demand; left D) demand; right

Economics