If the cross-elasticity of demand for two goods is positive, this means that the goods are:
a. normal goods.
b. inferior goods.
c. substitutes.
d. complements.
c
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The market for a competitive price-taker market clears at a price of $3, and the minimum average cost for all firms is $2.50 . In the long run, we would expect an increase in
a. each firm's output. b. the number of firms. c. each firm's profit. d. each firm's average cost.
Which of the following is an example of an organization using marginal analysis?
A. A hotel manager calculating the average cost per guest for the past year. B. A farmer hoping for rain. C. A government official considering what effect an increase in military goods production will have on the production of consumer goods. D. A business calculating economic profits.
Max is shopping for a new winter jacket. The salesperson explains that two coats have identical features-the Columbia jacket that costs $120, and the Burton jacket that costs $300. Max buys the Burton jacket. Burton jackets may be a good example of:
A. an inferior good. B. a Giffen good. C. a Veblen good. D. a normal good.
We can roughly estimate how long it will take a country to double its real GDP per capita using the:
A. rule of 60. B. rule of 70. C. GDP deflator. D. growth estimator.