If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates that these two goods are complementary.
Answer the following statement true (T) or false (F)
True
The formula for cross-price elasticity is the percentage change in quantity demanded for new cars divided by the percentage change in gasoline prices. For complementary goods, the sign on the cross-price elasticity formula will be negative.
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Which of the following provide increased competition for public schools?
a. homeschooling b. charter schools c. vouchers d. all of the above
According to the Laffer curve, when the tax rate is 100 percent, tax revenue will be:
a. the same as it would be at a 50 percent tax rate. b. the same as it would be at a 20 percent tax rate. c. greater than it would be at a 50 percent tax rate. d. at the maximum value. e. 0.
In a two-commodity world, balanced growth in a country decreases its willingness to trade because the country becomes self-sufficient in the production of both the goods.
Answer the following statement true (T) or false (F)
Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any price above $5 per unit:
A. there will be an excess demand for the product. B. there will be an excess supply of the product. C. the quantity supplied of the product will be less than the quantity demanded of that product. D. there will be a shortage of that product.