When the price of a pizza is $10, the quantity of soda demanded is 300 drinks. When the price of a pizza is $15, the quantity soda demanded is 100 drinks. The cross elasticity of demand is equal to
A) -0.25.
B) -0.40.
C) -2.50.
D) -25.00.
E) 4.00.
C
You might also like to view...
A stock whose rate of return fluctuates less than the rate of return of a market portfolio will have a beta that equals
A) 1. B) less than 1. C) more than 1. D) Either A or C above
The prices of most services have risen much faster than inflation in recent years because
a. wages and salaries of service providers have risen much faster than inflation. b. wages and salaries of service providers have risen but their productivity has not. c. the productivity of service providers has risen dramatically. d. the demand for services has risen.
The consumption schedule shows the relationship of household consumption to the level of:
a. The marginal propensity to consume b. Disposable income c. Investment d. Saving
Which statement is true?
A. The federal budget deficit reached a peak in 1992 and has been declining since then. B. The federal budget deficit in fiscal year 1997 was at a record high. C. Because we ran federal budget surpluses since 1998, the national debt is falling. D. The federal government ran budget surpluses from 1998 to 2001, but returned to deficits since 2002.