Suppose Tinsel Town Videos lowers the price of its movie club membership by 10 percent and as a result, CineArts Videos experienced a 16 percent decline in its movie club membership
What is the value of the cross-price elasticity between the two movie club memberships?
A) -1.6 B) -0.625 C) 0.625 D) 1.6
D
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If the slope of the consumption schedule is 0.75, then the slope of the saving schedule is
A. 0.75. B. 1.25. C. 0.25. D. not possible to determine from the data.
A decrease in demand will cause the equilibrium price and quantity of a good to fall, ceteris paribus
Indicate whether the statement is true or false
The ________ the nominal interest rate, the ________ is the quantity of money demanded
A) lower; greater B) higher; greater C) more variable; smaller D) lower; smaller E) None of the above because the nominal interest rate does not influence the quantity of money demanded.
An advantage to specialization is that it can decrease the average cost of production by concentrating on smaller-scale production.
a. true b. false