If milk and cookies are complements, then their cross price elasticity of demand will be
A. negative.
B. greater than zero but less than 1.
C. elastic.
D. positive.
Answer: A
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In the above figure, the economy is initially at point B. If the exchange rate falls, there is
A) a movement to point C. B) a movement to point A. C) a shift to AD2. D) a shift to AD1.
International trade based solely on internal scale economies in both countries is likely to be carried out by
A) monopolists in each country. B) a relatively large number of price competing firms. C) a relatively small number of price competing firms. D) a relatively small number of imperfect competitors. E) a large number of oligopolists in each country.
What method is often used when both parties want to eliminate information asymmetry
A. Screening. B. Signaling. C. Statistical discrimination. D. Moral hazard.
If all firms in an industry are price-takers, then:
What will be an ideal response?