The percentage change in the demand for one good divided by the percentage change in the price of a related good is the
A. cross price elasticity of demand.
B. price elasticity of supply.
C. price elasticity of demand.
D. income elasticity.
Answer: A
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Assuming perfect asset substitutability, can sterilized intervention by the central bank be effective? Please discuss
What will be an ideal response?
If a monopolistically competitive firm raises its price,
a. quantity demanded falls to zero b. quantity demanded declines, but not to zero c. the market supply curve shifts outward d. the market supply curve shifts inward e. quantity demanded remains constant
A tax elasticity of supply equal to 0.21 indicates that
A. Workers will cut back on the number of hours worked if tax rates increase. B. Employers will hire more workers if tax rates increase. C. Employers will not hire any workers if tax rates increase. D. Workers will not cut back on the number of hours worked if tax rates increase.
Increases in deficit spending may be accompanied by
A. An increase in U.S. exports. B. A shift of the Aggregate supply curve to the right. C. A shift of the Aggregate demand curve to the right. D. The U.S. Treasury buying more bonds.