Cross elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good.
Answer the following statement true (T) or false (F)
True
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The purchase of a new house is included in government spending
a. True b. False Indicate whether the statement is true or false
Checking accounts perform the same market functions as cash.
Answer the following statement true (T) or false (F)
Any point representing a cost and output combination that is below the long-run average cost curve:
a) may represent actual cost and production levels in the short run. b) represents unattainable cost levels. c) is attainable only when all factors are variable. d) is attainable if the firm minimizes its costs according to the "principle of substitution". e) represents less efficient cost levels than points on the long-run average cost curve.
The negative relationship between the quantity demanded of a commodity and its price can be explained by the principle of
A) increasing total utility. B) contingent valuation. C) indifference analysis. D) diminishing marginal utility.