If a rise in the price of good 1 decreases the quantity of good 2 demanded
A) the cross elasticity of demand is negative.
B) the cross elasticity of demand is positive.
C) good 1 is an inferior good.
D) good 2 is an inferior good.
A
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In the figure above, which of the following represents a real flow of a factor of production?
A) Labor B) Wages C) Goods bought D) Services sold E) Firms' expenditures on factors of production
Examining data on cyclical unemployment plotted against unanticipated inflation shows
A) a positive relationship. B) a negative relationship. C) no significant relationship. D) a relationship only during the 1960s.
If economies of scale exist for a particular production relationship, long-run average costs will
A. rise. B. fall. C. first rise and then fall. D. be unaffected since there is no direct relationship between the two.
Referring to the graph above, assume that, at first, the labor market is in equilibrium at point 4. In which scenario does unemployment rise, with no change in the quantity of employment?
A) real wage rises to the level of points 1 and 2 B) supply shifts to pass through point 5, with no change in the real wage C) demand shifts to pass through point 3, with no change in the real wage D) supply shifts to pass through point 3, with no change in the real wage