A positive cross price elasticity of demand between two goods suggests that the goods are
A. not related.
B. substitutes.
C. complements.
D. both of unitary elasticity.
Answer: B
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Compare the effects of an increase in aggregate demand when the price level is fixed versus when it can change
What will be an ideal response?
Explain how a monopolist can increase profits by price discriminating. What are the conditions necessary for price discrimination?
What will be an ideal response?
An increase in the minimum wage
a. increases both the quantity demanded and the quantity supplied of labor. b. decreases both the quantity demanded and the quantity supplied of labor. c. increases the quantity of labor demanded but decreases the quantity of labor supplied. d. decreases the quantity of labor demanded but increases the quantity of labor supplied.
The goal of utility maximization is to allocate your ________ in order to maximize your ________.
A. utility; spending B. resources; satisfaction C. resources; desires D. time; work