The cross-price elasticity of demand between spaghetti and spaghetti sauce is most likely:
A. positive.
B. negative.
C. zero.
D. More information is needed to determine.
Answer: B
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Which of the following would cause an increase in aggregate demand in the short run?
A) an increase in taxes B) an increase in the supply of money C) a decrease in the price level D) a crop failure
Refer to the scenario above. What will the outcome of this game be?
A) Both players will choose black. B) Both players will choose white. C) Arthur will choose white and Catherine will choose black. D) Catherine will choose white and Arthur will choose black.
Of the following market structures, which has the fewest number of firms competing against each other?
A) monopolistic competition B) oligopoly C) perfect competition D) Both answers A and C are correct.
Comment on the following statement: "When firms are earning positive profits, the industry supply curve will shift to the right."
What will be an ideal response?