Cross elasticity tells a manager that the product they produce is
A) a countercyclical good.
B) a cyclical good.
C) a luxury.
D) a substitute or complement to other goods.
D
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Why is the benefit of something measured by what you are willing to give up?
What will be an ideal response?
The U.S. demand for foreign cars has increased dramatically since the early 1900s because
(a) Americans perceive foreign cars as lower quality cars than U.S.-produced cars. (b) foreign producers are manufacturing relatively fuel-efficient cars. (c) U.S. consumer demand for large, fuel inefficient cars has increased. (d) of all of the above reasons.
How are economic theories like a road map?
a. They both ignore irrelevant details. b. They both are constantly used by economists. c. They both refer to important geographic locations. d. They both reflect the world precisely.
If the demand for jelly decreases, and the price of grapes (used to make jelly) rises:
A. the equilibrium price of jelly rises and the equilibrium quantity of jelly might rise or fall. B. the equilibrium price of jelly falls and the equilibrium quantity of jelly might rise or fall. C. the equilibrium price of jelly might rise or fall, and the equilibrium quantity of jelly falls. D. the equilibrium price of jelly might rise or fall, and the equilibrium quantity of jelly rises.