We would expect the cross elasticity of demand between Pepsi and Coke to be:
A. positive, indicating normal goods.
B. positive, indicating inferior goods.
C. positive, indicating substitute goods.
D. negative, indicating substitute goods.
Answer: C
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What is the name of the organization that defines business cycle peaks and troughs in the United States?
A) the National Bureau of Economic Research B) the National Peak and Trough Committee C) the Bureau of Labor Statistics D) the Federal Reserve
Amy became a tour guide at a national park and was paid $20 per hour to conduct four two-hour tours per day. Each tour generated $400 in revenues for the park. Which of the following shows the marginal resource cost associated with Amy’s labor?
a. $20 hourly rate b. $360 profit per tour c. $1600 revenues per day d. $800 wages per week
"The fewer the number of substitutes for a product, the more elastic the demand for that product." Is the previous statement true or false?
What will be an ideal response?
Refer to the above figure. Other things being equal, if price is at P2, then we would expect
A. consumers to reduce their offering price for the good. B. consumers to bid against each other for goods and force the price still higher. C. an excess quantity demanded to occur. D. price to decline until an equilibrium is achieved at P0.