Two goods are complementary if:
A. the income elasticity of demand is negative.
B. each performs the same basic task.
C. the cross elasticity of demand is positive.
D. they are used together.
Answer: D
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Politicians often highlight the plight of a single individual as a reason to support a particular project or agenda. In this case, politicians are using
A) the Khaneman effect. B) the Allais effect. C) framing. D) prospect theory.
If the quantity of a good supplied is not very sensitive to the price of the good, this is illustrated by a
a. demand curve that is relatively flat (more horizontal). b. demand curve that is relatively steep (more vertical). c. supply curve that is relatively flat (more horizontal). d. supply curve that is relatively steep (more vertical).
The opportunity costs associated with the use of resources owned by a firm are usually
a. externalities. b. implicit costs. c. explicit costs. d. sunk costs.
Price elasticity of demand measures
A) how responsive suppliers are to price changes. B) how responsive sales are to changes in the price of a related good. C) how responsive quantity demanded is to a change in price. D) how responsive sales are to a change in buyers' incomes.