The cross-price elasticity between Gillette razors and a related good is -3.4. What happens to the demand for the related good if the price of Gillette razors falls by 10 percent?
A) The quantity demanded of the related good falls by 34 percent.
B) The quantity demanded of the related good rises by 34 percent.
C) The quantity demanded of the related good rises by 3.4 percent.
D) The quantity demanded of the related good falls by 3.4 percent.
B
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To say that the demand for labor is a derived demand means that
a. the quantity of labor is derived by the real wage rate b. the demand for labor depends upon the demand for the product produced by labor c. the supply of labor rises when the demand for labor falls d. equilibrium in the resource market ensures there is equilibrium in the product market e. changes in the demand for labor lead to changes in the demand for the product produced by labor
If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.
A. uncertain; positive B. positive; uncertain C. positive; negative D. positive; positive
The rate of economic growth will be faster if
A) the rate of growth of the population is higher. B) consumption spending is greater. C) the rate of saving is higher. D) the rate of growth of the money supply is higher.
Efficiency-wage theory suggests that paying
a. low wages might be profitable because they raise the efficiency of a firm's workers. b. low wages might be profitable because they lower the efficiency of a firm's workers. c. high wages might be profitable because they raise the efficiency of a firm's workers. d. high wages might be profitable because they lower the efficiency of a firm's workers.