Suppose the demand function is given by Qxd = 10Px0.9 Py0.5 M0.22 H. Then the cross-price elasticity between goods x and y is:
A. 0.22.
B. 0.5.
C. ?0.5.
D. 0.9.
Answer: B
You might also like to view...
Figure 9.1 shows three aggregate demand curves. A movement from point b to point c could be caused by a(n)
A) decrease in government spending. B) decrease in the price level. C) decrease in taxes. D) increase in the money supply.
If a developing country institutes a currency board, it relinquishes control over having
A) monetary policy autonomy. B) exchange rate stability. C) freedom of capital movement. D) freedom of labor movement. E) all of its funds.
Which of the following measures the rate of return a bond is expected over time?
a. Bond yield b. Interest rate c. Bond equity d. Coupon rate
Which of the following is a driving force underlying economic growth?
a. trade restrictions that protect domestic businesses from competition with foreign producers b. regulations that require businesses to obtain permission from the government before starting a new business c. tax increases that expand the revenues of the government d. entrepreneurial discovery and production of improved products