If two products are complements, the ________ elasticity of demand is ________.
A. income; negative
B. cross-price; negative
C. cross-price; positive
D. income; positive
Answer: B
You might also like to view...
After increasing at more than 2 percent per year between 1950 and 1973, the growth rate of average labor productivity ________ between 1973 and 1995, and ________ between 1996 to 2007.
A. speeded up; accelerated even more B. slowed; decreased even more C. slowed; picked up D. speeded up; slowed
Price ceilings have to be set above the undistorted market equilibrium price in order to have any impact.
Answer the following statement true (T) or false (F)
Suppose real GDP is $14 trillion and potential real GDP is $14.4 trillion. An increase in government purchases of $400 billion would cause real GDP to ________ potential real GDP (assuming a constant price level)
A) be less than B) be more than C) equal D) There is insufficient information given here to draw a conclusion.
The formal definition of price elasticity of demand is
A) change in quantity demanded divided by change in price. B) quantity demanded divided by price. C) percentage change in quantity demanded divided by percentage change in price. D) quantity demanded multiplied by price and divided by 100.