Use the figure below to calculate the cross-price elasticity of demand for good X when the price of good Y increases from $12 to $14:
A. 0.64
B. 0.20
C. 15.38
D. 0.42
E. 2.00
Answer: D
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670Using the regular percentage change formula, what is the price elasticity of demand when price increases from $6 to $7?
A. Elastic B. Unelastic C. Inelastic D. Unit elastic
A bag has 10 green balls, 6 blue balls, and 44 purple balls. A ball is picked randomly from the bag. What is the probability that it is a: a) green ball. b) blue ball. c) purple ball
What will be an ideal response?
For W to be an effective control variable in IV estimation, the following condition must hold
A) E(ui) = 0 B) E(ui|Zi,Wi) = E(ui|Wi) C) E(uiuj) ? 0 D) there must be an intercept in the regression