When there is a positive cross-price elasticity of demand between two goods,
a. they are independent goods
b. they are complementary goods
c. they are substitute goods
d. they are normal goods
e. the income elasticity of demand is positive
C
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Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5 percent, Fershur Bank's
A) desired reserves increase by $4,000. B) liabilities do not change but its assets increase. C) excess reserves increase by $4,000. D) desired reserves increase by $200 and its excess reserves increase by $3,800. E) assets and its liabilities change in opposite directions.
A price ceiling is non-binding when.
A. it is set above the equilibrium price. B. it is set below the equilibrium price. C. it reduces the output in a market. D. it increases the output in a market.
In the U.S., the average adult holds about $4,490 in
a. currency. b. wealth. c. M1. d. M2.
In Kejana’s country, the population is growing at a rate of 3.5 percent per year. Due to environmental factors, the country has a limited supply of land on which to grow food, and food output is increasing at a rate of 2.75 percent per year. The population growth rate in Kejana’s country is ______ the per capita output.
a. having minimal impact on b. positively affecting c. operating separately from d. negatively affecting