The cross price elasticity of demand is measured by the
A. percentage change in the price of one good divided by the percentage change in the demand for another good.
B. percentage change in the quantity demanded of one good divided by the percentage change in quantity demanded of another good.
C. percentage change in the demand for one good divided by the percentage change in price of another good.
D. percentage change in the price of one good divided by the percentage change in price of another good.
Answer: C
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Based on the data in the table above, what is the value of M2?
A) $2,950 billion B) $4,187 billion C) $7,978 billion D) $8,587 billion
When there are positive externalities associated with the consumption of a good, we can expect the market
a. demand curve to lie above the social demand curve b. demand curve to lie below the social demand curve c. supply curve to lie above the social supply curve d. supply curve to lie below the social supply curve e. demand curve to lie below the social supply curve
If the price of inputs falls and the level of consumer indebtedness rises:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Aggregate demand rises, and aggregate supply falls. d. Neither aggregate demand nor aggregate supply change. e. None of the above.
The ability to produce a good at lower opportunity costs than another producer is known as
A. economies of scale. B. comparative advantage. C. marginal cost production. D. absolute advantage.