Cross-price elasticity of demand is

A. negative for substitute goods.
B. positive for general goods.
C. negative for complementary goods.
D. unitary for secondary goods.


Answer: C

Economics

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If the elasticity of substitution of a production function is equal to zero, then this production function is a

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Graphically, market supply for a product:

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Figure 7.2 shows a monopolist's demand curve. Suppose that the marginal cost is $6 for all units and the current output level is 4 units. Then what would you recommend to the firm?

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Economics