If the cross-price elasticity of demand between two goods is -2.2, then the
a. two goods are substitutes
b. two goods are complements
c. income elasticity of demand must be between 0 and 1.0
d. goods are both normal goods
e. goods are both inferior goods
B
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Based on the model, the price at the efficient equilibrium is
Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q; MSB = 30 – 0.3Q; MEB = 0. a. PE = $18 b. PE = $22.50 c. PE = $20 d. PE = $40
Which of the following shifts the supply curve of broccoli?
A) an increase in income B) a newly discovered increase in the nutritional value of broccoli C) a newly discovered link between broccoli consumption and tooth decay D) the destruction of much of this year's broccoli crop by hurricanes
A positive spending shock ________ real interest rates and ________ output in the short run, thereby its effect on stock prices is ________
A) raises; lowers; positive B) raises; raises; ambiguous C) lowers; raises; negative D) lowers; raises; positive
When the feedback effects from income to the money market are included,
a. a given change in the money supply will cause a smaller change in the quantity of money demanded. b. a given change in the money supply will cause a larger change in the interest rate c. given change in the money supply will cause no change in the interest rate d. a given change in the money supply will cause a smaller change in the interest rate e. a given change in the money supply will cause a larger change in the quantity of money demanded.