In the above table, the cross price elasticity of demand for good B with good A when PA rises from $10 to $12 is
A. -0.58.
B. +0.58.
C. +1.83.
D. +0.29.
Answer: B
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A deadweight loss is created
A) only if the last unit produced has a marginal social benefit greater than its marginal social cost. B) only if the last unit produced has a marginal social cost greater than its marginal social benefit. C) only if the last unit produced has a marginal social benefit equal to its marginal social cost. D) if for the last unit produced, marginal social cost is greater than its marginal social benefit or if its marginal social benefit is greater than its marginal social cost.
If the price elasticity of demand is 1.5, and a firm raises its price by 20 percent, the quantity sold by the firm will, ceteris paribus:
A. Rise by 13.3 percent. B. Fall by 13.3 percent. C. Rise by 30.0 percent. D. Fall by 30.0 percent.
Which of the schedules represent(s) a regressive tax?
Answer the question on the basis of the following five schedules, all of which represent income tax schedules for an economy. All figures are in billions of dollars.
A. V only.
B. III and V.
C. IV only.
D. I only.
A continuous decrease in the level of prices over time is called ________.
A) deflation B) inflation C) disinflation D) deflection E) depression