Peanut butter and jelly are:
a. substitutes and have a positive cross-price elasticity of demand.
b. complements and have a positive cross-price elasticity of demand.
c. substitutes and have a positive cross-price elasticity of demand.
d. complements and have a negative cross-price elasticity of demand.
e. inferior goods when the income elasticity of demand is positive.
c
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What are GATT and the WTO?
What will be an ideal response?
The marginal rate of substitution is the
A) rate at which the consumer will give up one good for an additional unit of the other good, such that total satisfaction is constant. B) rate at which the consumer can trade one good for the other in the marketplace. C) change in the quantity of one good that changes the utility received by one unit. D) same thing as the marginal utility of a good.
If a country wants to keep a foreign currency undervalued against the domestic currency:
A) it will buy both the foreign and domestic currency. B) it will sell both the foreign and domestic currency. C) it will buy the domestic currency and sell the foreign currency. D) it will buy the foreign currency and sell the domestic currency.
The quantity demanded of a good or service is the quantity that a consumer
A) is willing to buy at a particular price during a given time period. B) actually buys at a particular price during a given time period. C) needs to buy at a particular price during a given time period. D) should buy at a particular price during a given time period.