When the price of tacos went from $2 to $3 dollars each, the quantity demanded of burritos changed from 100 to 120 a day. The cross-price elasticity of demand for burritos calculated using the initial value method is:
A. 1.33.
B. 0.75.
C. 0.4.
D. -0.75.
Answer: C
You might also like to view...
Refer to Table 1-2. Using marginal analysis, how many hours should Julius extend his shop's hours of operations?
A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours
Given the information in Figure 14.4, the monopoly wage rate is:
A) W1. B) W2. C) W3. D) W4. E) none of the above
In computing GDP, market prices are used in the calculations because a. market prices are constant over time
b. market prices do not reflect how prices change over time. c. market prices are consistently free of inflation. d. market prices can be used to combine the variety of goods and services produced in an economy into a single measure.
Refer to the information provided in Figure 34.1 below to answer the question(s) that follow.
Figure 34.1Refer to Figure 34.1. If the economy is closed and the government increases spending by 25, the new equilibrium output is
A. 150. B. 200. C. 225. D. 240.