If the price of cereal increases by 10 percent and the amount of milk demanded decreases by 2 percent, then the cross-price elasticity of these goods is:
A. - 0.2
B. 5.
C. 0.2.
D. - 5.
Answer: A
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If the U.S. interest rate falls while the British interest rate remains constant, which of the following will happen in the market for pounds?
a. A rightward shift of the demand curve, a leftward shift of the supply curve, and an appreciation of the pound b. A leftward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the pound c. A leftward shift of the demand curve, a leftward shift of the supply curve, and a depreciation of the pound d. A rightward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the pound e. A leftward shift of the demand curve, a rightward shift of the supply curve, and a depreciation of the pound.
Classical economists are more likely than Keynesian economists to focus more on _____
Fill in the blank(s) with the appropriate word(s).
As a result of a decrease in the price of online streaming movies, consumers download more movies online and buy fewer DVDs. This is an illustration of
A. consumer sovereignty. B. the income effect. C. diminishing marginal utility. D. the substitution effect.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.