The formula for the cross-price elasticity of demand is percentage change in
A. quantity demanded of B/percentage change in income.
B. quantity demanded of B/percentage change in price of A.
C. quantity demanded of B/percentage change in price of B.
D. price of B/percentage change in quantity demanded of A.
Answer: B
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How do exports affect sellers' producer surplus?
What will be an ideal response?
Assume Willow's income to spend on either earrings or hairbands is $24. If her budget constraint is pictured in the graph shown, which of the following must be true?
A. Willow will buy more hairbands than earrings because they are less expensive.
B. Willow will buy more earrings than hairbands because they are less expensive.
C. Hairbands must cost $3, and earrings must cost $6.
D. Hairbands must cost $8, and earrings must cost $4.
Which of the following is the best example of a monopolistically competitive market?
a. Wheat. b. Automobiles. c. Diamonds. d. Retail sales.
A firm purchases $400,000 worth of raw materials and pays wages and salaries of $300,000 and dividends of $100,000 . If the firm sells its output for $1 million, the firm's value added to GDP is
a. $400,000. b. $600,000. c. $800,000. d. $1,000,000.