The cross-price elasticity sign for substitute goods is negative.
Answer the following statement true (T) or false (F)
False
The sign on the cross-price elasticity for substitute goods is positive. For example, if the price of Coke falls, the quantity demanded for Pepsi will fall. That is a negative change divided by a negative change, which equals a positive number. The cross-price elasticity formula is the percentage change in the quantity demanded for Pepsi divided by the percentage change in the price of Coke.
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Best Grapes is a new winery that wants to attract new customers. The managers of Best Grapes advertise the following, "Best Grapes: The Best Value Wine Money Can Buy." If Best Grapes wine is really of poor value, this is an example of ________ a(n) ________ good.
A) greenwashing; credence B) falsely advertising; credence C) falsely advertising; experience D) greenwashing; experience
Which of the following is also known as the firm's planning curve?
a. the average total cost curve b. the total cost curve c. the long-run average cost curve d. the long-run marginal cost curve e. the fixed cost curve
Social goods are goods and services that bestow collective benefits on members of society.
Answer the following statement true (T) or false (F)
________ refers to the fact that both human and financial capital leave developing countries in search of a higher rate of return.
A. Capital flight B. Urbanization C. Outsourcing D. Divestiture