If the price of pork chops falls from $8 to $6, and this leads to an increase in demand for apple sauce from 100 to 140 jars, what is the cross-price elasticity of apple sauce and pork chops at a pork chop price of $6?
A. -1.17
B. 2.71
C. 0.42
D. -0.86
Ans: D. -0.86
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The rapid growth of the Chinese economy should
A) benefit U.S. consumers as they have access to less-expensive consumer goods. B) make it more difficult for citizens of the United States to find jobs. C) not affect the mix of jobs available to citizens of the United States. D) A and B
The view that the choices consumers face should be limited for their own good is known as ________
A) Keynesian theory B) institutionalist theory C) rational adaptations D) libertarian paternalism
When firms have had to defend themselves against the charge that they have adopted unjustifiably low prices either to drive a competitor out of business or to prevent the entry of a rival, they have been accused of
a. creating a trust. b. conspiracy. c. predatory pricing. d. price discrimination.
The value of the best alternative to any action you undertake is referred to as its:
a. Increasing cost b. Production cost c. Resource cost d. Opportunity cost