When the price of hot dogs at the supermarket increases, the quantity demanded of hot dog buns declines. This situation describes:
a. the income elasticity of demand for hot dogs.
b. the income elasticity of demand for hot dog buns.
c. the price elasticity of supply for hot dogs.
d. the negative cross-price elasticity of demand for hot dogs and hot dog buns.
e. the positive cross-price elasticity of supply for hot dogs and hot dog buns.
d
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Explain how economists use random experiments
What will be an ideal response?
Which of the following is TRUE?
A) Points along the aggregate supply curve show the equilibrium levels of output and prices that are consistent on the demand side of the economy. B) Points along the aggregate demand curve show the equilibrium levels of output and prices that are consistent on the supply side of the economy. C) Aggregate demand shows the levels of GDP and prices where expenditure decisions and production decisions match. D) Aggregate supply shows the levels of GDP and prices where expenditure decisions and production decisions match.
In the short-run macro model, if firms produce more output than they sell, those firms will
a. increase the prices of their products b. decrease their output c. increase their output d. cut back on their consumption spending e. increase the prices of their products and reduce the amount of output they produce
Cartels are
A. difficult to organize. B. difficult to preserve. C. especially unlikely to succeed if the members sell many varied products. D. All of the responses are correct.