If the cross elasticity of demand for potato chips and pretzels equals 1.5,
a. potato chips and pretzels must both be luxury goods.
b. either potato chips or pretzels must be a luxury good, and both may be luxury goods.
c. potato chips and pretzels must be substitutes.
d. potato chips and pretzels must be complements.
c
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As the economy enters a strong expansion, then firms' demand for loanable funds
A) increases because the nominal interest rate rises. B) increases because expected profit increases. C) decreases because expected profit decreases. D) decreases because the nominal interest rate falls. E) increases because the real interest rate rises.
The table above shows sales of the firms in the chocolate industry. The Herfindahl-Hirschman Index in the industry is
A) 1346. B) 896. C) 1160. D) 2588.
________ flexible wages and prices imply that the short-run aggregate supply curve is ________
A) More; flatter B) Less; steeper C) less; vertical D) More; steeper
Medicare
A) subsidizes the care of older people, which gives them NO incentive to consume more medical services. B) subsidizes the care of older people, which gives them an incentive to consume more medical services. C) subsidizes the care of young people, which gives them an incentive to consume less medical services. D) subsidizes the care of middle aged people, which gives them an incentive to consume more medical services.