When two goods have positive cross elasticities of demand and positive income elasticities, they are:
a. Normal and substitutes
b. Normal and complements.
c. Inferior and substitutes.
d. Inferior and complements.
a
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In the above figure, the firm is breaking even at points
A) a and c. B) b and d. C) c and d. D) a and d.
Why might a nation that has an absolute advantage in the production of a good or a service still not be able to find a trading partner?
What will be an ideal response?
In the new Keynesian model, an increase in productivity will cause ________
A) a leftward shift in short-run and long-run aggregate supply B) a rightward shift in short-run and long-run aggregate supply C) a leftward shift in short-run aggregate supply and rightward shift in long-run aggregate supply D) a rightward shift in short-run aggregate supply and a leftward shift in long-run aggregate supply
Campaign speeches normally include normative economic statements
a. True b. False Indicate whether the statement is true or false