When two goods are complements, their cross-price elasticity of demand is:
A. positive.
B. negative.
C. zero.
D. equal to one.
B. negative.
You might also like to view...
Refer to Figure 24-2. Ceteris paribus, a decrease in the capital stock would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
When a product transformation curve is bowed outward, there are ________ in production
A) economies of scope B) economies of scale C) diseconomies of scope D) diseconomies of scale E) none of the above
Principals need to monitor agents
Indicate whether the statement is true or false
Economic models are used primarily to
a. predict behavior under specific circumstances b. make an exact reproduction of one facet of the economy c. increase the mathematical complexity and rigor of economics d. provide simple answers to simple questions e. give accurate forecasts of the future