The cross price elasticity between A and B is 1.2. We can conclude that
A) goods A and B are substitutes.
B) goods A and B are complements.
C) goods A and B are unrelated.
D) goods A and B are perfect substitutes.
Answer: A
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To keep employees from shirking, you can invest in greater monitoring
a. even though monitoring is expensive b. especially when monitoring is not very efficient c. when employees fail to respond to incentive contracts d. when incentives solve both moral hazard and adverse selection problems with employees
Which resource earns the highest economic rent as a proportion of total earnings?
a. a resource specialized in one task b. a nonspecialized resource c. a resource with inelastic demand d. a resource in low demand e. a resource with elastic demand
Which of the following is the best example of a private, unregulated monopoly or near-monopoly is:
A. the local post office. B. the local electric company. C. a professional sports team. D. the only large employer in a small town.
Refer to the graph shown. The marginal rate of substitution at point C is:
A. 1. B. 1.5. C. 2/3. D. impossible to determine with the information given.