For many consumers, bacon and eggs are complements. Therefore, egg producers monitor the price of bacon because the cross elasticity between bacon and eggs is
A. negative, and a decrease in the price of bacon will decrease the demand for eggs.
B. positive, and a decrease in the price of bacon will increase the demand for eggs.
C. negative, and a decrease in the price of bacon will increase the demand for eggs.
D. positive, and an increase in the price of bacon will increase the demand for eggs.
C. negative, and a decrease in the price of bacon will increase the demand for eggs.
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The figure above shows the housing market in the city of Appleville. A rent ceiling of $650 per month is imposed. With the rent ceiling, the quantity of housing rented in Appleville is
A) 200 units below the efficient level. B) 100 units above the efficient level. C) 300 units below the efficient level. D) efficient.
The price elasticity of demand for a printer is estimated to be 1 . This means that an increase in price by 10% will
a. Increase quantity demanded by 10% b. Decrease quantity demanded by 10% c. Increase demand by 10% d. Decrease demand by 10%
The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in
a. performing an experiment in an economic system. b. applying mathematical methods to economic analysis. c. analyzing available data. d. formulating theories about economic events.
The opportunity cost of attending college might best be described as
A) the money that must be paid in order to attend college. B) the lowest-valued alternative use of the student's time. C) the highest-valued alternative use of the student's time. D) the value that the student attaches to not working.