The "Applied Perspective" titled "Cross Elasticity in the Salmon Industry" suggests that the cross elasticity of demand between farm-raised salmon and wild salmon is
a. positive and fairly large so the two types of fish are close substitutes consumers
b. positive but close to zero so the two types of fish are in different markets
c. negative because consumers like to serve both types as complementary goods
d. high so that a price decrease leads to a total revenue increase
e. low so that a price decrease leads to a total revenue decrease
A
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Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price decreases from $12 to $10 is
A. inelastic. B. unit elastic. C. elastic. D. perfectly elastic.
Since 1950, there has been a substantial increase in wheat production. The increase in production has led to a decrease in the price of wheat because of which of the following factors?
A) The absolute value of the price elasticity of demand for wheat is less than 1 and the income elasticity of demand for wheat is greater than 1. B) The absolute value of the price elasticity of demand for wheat is greater than 1 and wheat is a close substitute for other food products. C) The income elasticity of demand for wheat is high and wheat is an inferior good. D) The absolute value of the price elasticity of demand for wheat is less than 1 and the income elasticity of demand for wheat is low.
In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed and 2 million of the employed are working part-time, half of whom wish to work full-time. The unemployment rate is
A) 9.1 percent. B) 10 percent. C) 14.3 percent. D) 11.1 percent. E) none of the above.
When exchange rates are ________, we say that the country's exchange rate is fixed
A) determined in the market B) set by a country's central bank C) determined by supply and demand D) relatively stable