The cross-price elasticity of demand between pancakes and waffles is positive. This indicates all of the following except one. Which is the exception?
a. Pancakes and waffles are substitutes.
b. An increase in the price of pancakes will shift the demand curve for waffles to the right.
c. An increase in the price of waffles will shift the demand curve for pancakes to the right.
d. A decrease in the supply of waffles will shift the demand curve for pancakes to the right.
e. Pancake demand and waffle demand are price elastic.
E
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Suppose the average price of gasoline in the United States rose from $3 per gallon to $4 per gallon. Accompanying the increase in gas prices was a decrease in new automobile sales
Other things equal, if this trend continues, real GDP would likely ________ and the output gap would become ________. A) rise; more negative B) rise; less negative C) fall; more negative D) fall; less negative
According to Keynesian theory, the natural forces in the economy may not quickly move the economy toward potential real GDP
a. True b. False Indicate whether the statement is true or false
Which of the following assets has the greatest liquidity?
a) Checking account b) Share of stock c) Savings bond d) Real estate
Which of the following would cause the demand for labor to change?
A. a change in the price of the good produced B. a change in the cost of living C. changes in the wage rate D. movements along the labor demand curve