You would expect the cross elasticity between tennis racquets and tennis balls to be
a. negative
b. positive
c. zero
d. one
e. infinite
A
You might also like to view...
The figure above illustrates a linear demand curve. By comparing the price elasticity in the $2 to $4 price range with the elasticity in the $8 to $10 range, you can conclude that the elasticity is
A) greater in the $8 to $10 range. B) greater in the $2 to $4 range. C) the same in both price ranges. D) greater in the $8 to $10 range when the price rises but greater in the $2 to $4 range when the price falls.
In the long run, the economic profit of a firm in a perfectly competitive market
A) will be above zero. B) will be below zero. C) will equal zero. D) can be above, below, or equal to zero.
The Fed engages in open market operations and sells government securities. The result is
A) lower interest rates. B) higher interest rates. C) interest rates remain unchanged since there is no reason to think bond prices changed. D) uncertain since more information is needed.
If Jenny’s taxes are $10,000 when she earns $50,000 and $12,000 when she earns $60,000, then
A. Jenny faces a progressive tax. B. Jenny faces a regressive tax. C. Jenny faces a proportional tax. D. Jenny faces a rising marginal tax rate.