When the price of sausages is $2.00 per pound, consumers buy 50 pounds of fish. When the price of sausages rises to $3.00 per pound, 60 pounds of fish are purchased. The cross price elasticity of demand between sausages and fish is approximately equal to
A) +0.04.
B) -0.45.
C) +2.20.
D) +0.45.
Answer: D
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Monopolists are criticized because they are inefficient. What is meant by this statement?
a. Monopolists charge too high a price. b. Monopolists don't innovate enough to control pollution. c. Monopolists produce a large quantity of waste. d. Monopolists usually don't produce at the minimum of the ATC. e. Monopolists could use their resources better elsewhere.
A tariff has the effect of granting ____ a larger share of the domestic market
a. domestic consumers b. foreign consumers c. domestic producers d. foreign producers e. no producers or consumers
Given the possible strategies listed below, design the best plan for increasing the country's future standard of living. i. build new factories ii. print money iii. develop new production technology iv. sacrifice consumer goods for capital formation iv. tighten immigration policy v. produce only enough capital goods to replenish depreciation.
A. i, ii, and iii only B. i, iii, and iv only C. ii, iv, and v only D. i, ii, iii, iv, and v
A pure monopoly has a HHI value of
A. 1,000. B. 5,000. C. 10,000. D. 100,000.