The cross-price elasticity of demand for peanut butter with respect to the price of jelly is -0.3. If we expect the price of jelly to decline by 15, what is the expected change in the quantity demanded for peanut butter?
A) +15
B) +45
C) +4.5
D) -4.5
Question 2
As you move rightward on a marginal cost of abatement curve, emissions are
A) falling, and the cost of eliminating the marginal unit falls.
B) rising, and the cost of eliminating the marginal unit falls.
C) falling, and the cost of eliminating the marginal unit rises.
D) rising, and the cost of eliminating the marginal unit rises.
E) rising, and the cost of eliminating the marginal unit is constant.
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