If the cross-price elasticity of two goods is positive, then the two goods are
a. substitutes.
b. complements.
c. normal goods.
d. inferior goods.
a
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A study conducted by a research firm revealed that RiteCure Health Insurance charges higher premiums than most of its rivals. The study also revealed that unlike its rivals, 60% of RiteCure's customers have chronic illnesses
a) What is the link between these two findings? b) What is likely to happen if the premium continues to rise?
Refer to Table 18-9. Calculate the income tax paid by Sylvia, a single taxpayer with an income of $70,000
A) $21,000 B) $15,740 C) $15,400 D) $13,475
Demand curves usually slope downward because of the income and substitution effects, and because of the law of diminishing marginal utility
a. True b. False
A monopolist maximizes profit by producing the quantity at which MC = MR, just like a perfect competitor
a. True b. False Indicate whether the statement is true or false