Considering the concept of cross-price elasticity, if two goods are substitutes:
A. an increase in the price of one causes a decrease in the demand for the other.
B. a decrease in the price of one causes an increase in the demand of the other.
C. an increase in the price of one causes an increase in the demand for the other.
D. the cross-price elasticity is negative.
C. an increase in the price of one causes an increase in the demand for the other.
You might also like to view...
Which of the following does NOT increase labor productivity?
A) increases in aggregate hours B) physical capital growth C) human capital growth D) technological advances
Which of the following will not cause a change in demand for crackers?
a. A change in consumers' income. b. A change in the price of crackers. c. A change in the price of cheese. d. A change in the number of cracker-eaters. e. A change in consumers' tastes for crackers.
An externality exists when the cost or benefit resulting from some activity or transaction is experienced by parties external to the activity or transaction.
Answer the following statement true (T) or false (F)
The demographers predict that the worldwide total fertility rate will decline to one birth per woman per lifetime. If this happens, then:
A. Each generation will be one-fourth as large as the previous one B. Each generation will be half as large as the previous one C. Each generation will be as large as the previous one D. Each generation will be one half larger than the previous