If the quantity of pineapples demanded increases by 4% when the price of papayas increases by 16%, the cross-price elasticity of demand between pineapples and papayas is
A. -4.
B. 0.25.
C. 4.
D. 64.
Answer: B
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Over the past century in the United States, average income as measured by real GDP per person has grown about
a. 3.5 percent per year, which implies a doubling about every 20 years. b. 2 percent per year, which implies a doubling about every 35 years. c. 4 percent per year, which implies a doubling about every 17.5 years. d. None of the above is correct.
An increase in the marginal propensity to consume would cause the IS curve to
A) make a parallel shift to the right. B) make a parallel shift to the left. C) rotate to become steeper from its vertical intercept. D) rotate to become flatter from its vertical intercept. E) rotate to become flatter from its horizontal intercept.
Which of the following economies have the highest degree of economic freedom?
What will be an ideal response?
Personal income equals personal disposable income plus
a. payroll taxes. c. transfer payments. d. dividend payments. d. personal saving. e. personal taxes.