If the cross-price elasticity of demand is -3, then
a. the goods are substitutes
b. one good is price inelastic
c. one good is an inferior good
d. one good is a luxury good
e. the goods are complements
E
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A firm may choose to raise price when
A. profits would increase at the higher price. B. MR > MC. C. average profit is zero. D. it relies on marginal analysis.
The labor force participation rate of women in the United States has been
a. increasing for several decades and this has strongly affected GDP. b. decreasing for the past several decades after increasing dramatically in the early 1900s. c. approximately constant during the last three decades. d. decreasing since the early 1900s.
The substitution effect causes a consumer to buy less of a product when the price increases because the
A. product is now less expensive compared to similar products B. product is now more expensive compared to similar products C. consumer's real income has decreased D. Consumer's real income has increased E.. consumer will buy more inferior goods and fewer normal goods
A $500 investment has the following payoff frequency: half of the time it will pay $350 and the other half of the time it will pay $900. Its standard deviation and value at risk respectively are:
A. $275; $350 B. $625; $275 C. $125; $500 D. $275; $150