The percentage change in the quantity of peanut butter demanded divided by the percentage change in price of jelly measures:
A. the price elasticity of demand for peanut butter.
B. the price elasticity of demand for jelly.
C. the cross-price elasticity of demand for peanut butter with respect to the price of jelly.
D. the cross-price elasticity of demand for jelly with respect to the price of peanut butter.
Answer: C
You might also like to view...
The mass use of credit cards began in 1958 with the BankAmericard. Its name changed in 1976 to
A) Visa B) Master Card C) Visa D) American Express
When the economy suffers a temporary negative supply shock and the central bank responds by changing the autonomous component of monetary policy to keep inflation at the target inflation rate, then
A) aggregate output drops in the short run. B) output will return to potential output over time. C) aggregate output is stabilized. D) all of the above. E) both A and B.
Although the Fed professed employment of ________ targeting during the 1970s, its behavior suggests that it emphasized ________ targeting
A) free-reserve; interest-rate B) interest-rate; monetary aggregate C) monetary aggregate; interest-rate D) free reserve; monetary aggregate
Which of the following appears as a positive item on the balance of payments accounts for the United States?
A. U.S. government sending aid to natural-disaster victims in Asia B. American tourists spending money in the other countries C. The buying of U.S. Treasury bonds by a foreign bank D. The payment of stock dividends by U.S. firms to foreign shareholders