At Mcdonald, as the price of grilled chicken salad increases from $4 to $6 while the quantity demanded of Big Mac rises from 700 to 900 a day. Which of the following is NOT true? A.The cross elasticity of demand is 5/8 B.At Mcdonald, grilled chicken salad and Big Mac are substitutes. C.For every 10% increase in the price of grilled chicken salad, we should expect to see a 6.25% increase in the quantity demanded of Big Mac. D.We can tell from the above information that Big Mac is a normal good. E.none of the above

Given: The price of grilled chicken salad increases from $4 to $6 The quantity demanded for Big Mac…

Answered: At Mcdonald, as the price of grilled…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 7P

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At Mcdonald, as the price of grilled chicken salad increases from $4 to $6 while the quantity demanded of Big Mac rises from 700 to 900 a day. Which of the following is NOT true?

	A.	The cross elasticity of demand is 5/8
	B.	At Mcdonald, grilled chicken salad and Big Mac are substitutes.
	C.	For every 10% increase in the price of grilled chicken salad, we should expect to see a 6.25% increase in the quantity demanded of Big Mac.
	D.	We can tell from the above information that Big Mac is a normal good.
	E.	none of the above

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