Two items which have a negative cross price elasticity of demand are referred to as
A) luxury goods.
B) inferior goods.
C) substitutes.
D) complements.
D
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Which of the following increases the demand for a good?
A) a rise in the price of a complement B) the expectation that future income will be higher C) an increase in income, assuming the good is an inferior good D) a decrease in the number of buyers E) a fall in the price of a substitute
For any horizontal demand curve, the price elasticity of demand is:
A. infinite. B. 1. C. equal to the price of the good. D. 0.
Suppose equilibrium price in the market is $30, and the marginal revenue is $20. What is the price elasticity of demand?
A. -3. B. 3. C. -5. D. -2.
The three major economic questions concerning production of good and services must be asked because of ______.
a. surplus b. technology c. scarcity d. currency