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Question4Not answeredMark 0.00 out of 1.00Flag questionQuestion textIf the price of chocolate-covered peanuts increases and thedemand for strawberry licorice twists increases, this indicatesthat these two goods are:Select one:A. inferior goods.B. complementary goods.C. normal goods.D. substitute goods.FeedbackThe correct answer is: substitute goods.Question5Not answeredMark 0.00 out of 1.00Flag questionQuestion textThe cross-price elasticity of electricity with respect to the price ofnatural gas has been estimated as being equal to 0.2. Thisimplies that:Select one:A. one of the two goods is inferior and the other is normal, but weneed additional information to determine which of them isnormal.B. natural gas and electricity are both normal goods.C. electricity and natural gas are complements.D. electricity and natural gas are substitutes.FeedbackThe correct answer is: electricity and natural gas are substitutes.Question6Not answeredMark 0.00 out of 1.00Flag questionQuestion textIf a good is very inexpensive, but it is a necessity, you wouldpredict that demand for the good is:Select one:
A. is price-elastic.B. is price-inelastic.C. has indeterminable price elasticity.D. is price unit-elastic.FeedbackThe correct answer is: is price-inelastic.Question7Not answeredMark 0.00 out of 1.00Flag questionQuestion textIf the price of chocolate-covered peanuts decreases from \$1.10 to\$0.95 and the quantity demanded increases from 190 bags to215 bags, then the price elasticity of demand (using the midpointmethod) is:Select one:A. 0.5.B. 0.8.C. 1.25.D. 2.FeedbackThe correct answer is: 0.8.Question8Not answeredMark 0.00 out of 1.00Flag questionQuestion textWhich of the following best describes the price elasticity ofdemand?Select one:A. The price elasticity of demand measures the change in theslope of the demand curve versus a change in the quantitydemanded.B. The price elasticity of demand measures the responsiveness ofthe change in the quantity demanded to a change in the price.C. The price elasticity of demand measures the responsiveness ofthe change in the slope of the demand curve to a change in theprice.

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