What does the cross elasticity of demand measure?
What will be an ideal response?
The cross elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good. The formula for the cross elasticity of demand is the percentage change in the quantity of the good demanded divided by the percentage change in the price of the related good.
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On the foreign exchange market, an increase in a country's exchange rate
A) decreases the demand for its currency and shifts the demand curve rightward. B) increases the quantity demanded of its currency and leads to a movement up along the demand curve. C) decreases the quantity demanded of its currency and leads to a movement up along the demand curve. D) decreases the demand for its currency and shifts the demand curve leftward. E) increases the quantity demanded of its currency and leads to a movement down along the demand curve.
If the government regulates the market in the above figure in a way to achieve efficiency, then ________ vaccinations will be produced and consumed
A) 0 B) 30 thousand C) 50 thousand D) None of the above answers is correct.
Refer to Table 9-5. Consider the following values of the consumer price index for 2015 and 2016. The inflation rate for 2016 was equal to
A) 215 percent. B) 21.5 percent. C) 8.0 percent. D) 3.9 percent.
A bank loans Greg's Ice Cream $250,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is
a. a liability for the bank and an asset for Greg's Ice Cream. The loan increases the money supply. b. a liability for the bank and an asset for Greg's Ice Cream. The loan does not increase the money supply. c. an asset for the bank and a liability for Greg's Ice Cream. The loan increases the money supply. d. an asset for the bank and a liability for Greg's Ice Cream. The loan does not increase the money supply.