If the cross price elasticity of demand between Los Angeles Lakers professional basketball tickets and Los Angeles Dodgers professional baseball tickets is positive, then the two goods are
A. not related.
B. substitutes.
C. complements.
D. unrelated.
Answer: B
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A decrease in input costs in the production of LCD televisions caused the price of LCD televisions to decrease. Holding everything else constant, how would this affect the market for video game consoles (a complement to LCD televisions)?
A) The demand for video game consoles would decrease and the equilibrium price of video game consoles would decrease. B) The demand for video game consoles would decrease because consumers could afford to buy fewer LCD televisions and video game consoles. C) The supply of video game consoles would increase and the equilibrium price of video game consoles would decrease. D) The demand for video game consoles would increase and the equilibrium price of video game consoles would increase.
If the Consumer Price Index was 166.6 in one year and 172.2 in the next year, then the rate of inflation from one year to the next was:
A. 6.0 percent. B. 4.1 percent. C. 3.4 percent. D. 5.4 percent.
Figure 36-2
Which of the following explains the movements in Figure 36-2?
A. An increase in the U.S. price level B. A decrease in the U.S. price level C. An appreciation of the U.S. dollar D. An expansionary monetary policy
In the absence of government intervention, find the equilibrium price (PC) and Quantity (QC) being exchanged in the antifreeze market?
Suppose you are a public official responsible for setting a retail disposal charge on antifreeze. Estimated marginal benefit and cost functions for antifreeze are as follows: MPB = 10.0 – 0.5Q MPC = MSC = 1.0 + 0.4Q MSB = 10.0 –1.1Q, whereMPB, MSB, and MPC are measured in dollars per gallon, and Q is in millions of gallons.