_____ measures the percentage change in quantity demanded of a good caused by a given percentage change in the price of a related good
a. Income elasticity of demand
b. Cross-price elasticity of demand
c. Advertising elasticity of demand
d. Price elasticity of demand
e. Point elasticity
b
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A price ceiling
A) is an illegal price. B) is the price that exists in a black market. C) is the maximum price that can legally be charged. D) Both answers A and B are correct. E) Both answers B and C are correct.
Which of the following will cause the long-run aggregate supply curve to shift? I. Changes in technology II. Changes in government spending III. Changes in the money supply
A) I only B) II only C) I, II, and III D) only I and II
If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to sagging stock market, then:
a. Aggregate demand rises, and aggregate supply falls. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls, and aggregate supply rises. d. Aggregate demand and aggregate supply rise. e. Aggregate demand and aggregate supply fall.
Suppose 60,000 pesos buys a basket of goods in Mexico. If, at the existing exchange rate, it costs less than 60,000 pesos to buy the same basket of goods in the United States, then purchasing power parity implies that the:
A. dollar is overvalued. B. dollar should cost more pesos. C. dollar should cost fewer pesos. D. peso is undervalued.