The cross-price elasticity of demand measures:
A. the relationship between the demand for one good and the supply of another.
B. the relationship between the demand for one good and the price of another.
C. the relationship between the demand and supply of one good at the intersection of the curves.
D. the elasticity of demand at the intersection of the supply and demand curves.
Answer: B
You might also like to view...
Retailers often do not find it profitable to engage in promotional activities because
a. They cannot reap the full benefits of the promotion b. They have to share the benefits of the promotion with the manufacturer c. They are wary of competing retailers' ability to "free ride" on their efforts d. All of the above
Assume that Paris First National Bank is a thriving bank with deposits of $20 million. If the required reserve ratio is 20 percent and the bank is fully loaned out, the bank will keep what amount of required reserves?
a. $2 million. b. $4 million. c. $10 million. d. $16 million. e. $20 million.
According to rational expectations theory, a long period of unemployment is necessary to reduce inflation
a. True b. False Indicate whether the statement is true or false
Consider the following sequence of events: price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ? ?his sequence explains why the
a. money-supply curve is vertical. b. aggregate-demand curve shifts leftward in response to a monetary injection. c. aggregate-demand curve shifts rightward in response to a monetary injection. d. aggregate-demand curve slopes downward.