Refer to the above table. Suppose the price of Y rises from $18 to $20. What is the cross price elasticity of demand between X and Y?
A) -2
B) -1
C) 0
D) +1
D
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Everything else equal, the AC curve will shift downward if
A. input prices rise. B. input MPPs rise. C. output rises. D. output falls.
Corrective taxes
a. encourage consumers to avoid sales taxes by shopping online. b. are frequently used to discourage imports. c. are less efficient than direct regulation. d. give factory owners an economic incentive to reduce pollution.
In the short run unemployment may fall below the natural rate of unemployment if:
a) Nominal wages have risen less than inflation b) Nominal wages have risen at the same rate as inflation c) Nominal wages have risen more than inflation d) Nominal wages have risen less than unemployment
Answer the following statements true (T) or false (F)
1. The terms of trade will favor a larger nation over a smaller nation. 2. With constant costs in production, specialization tends to proceed to complete-specialization; but with increasing costs, specialization will not be complete. 3. A nation will import a particular product if the world price is less than the domestic price. 4. If a nation starts exporting a product to the rest of the world, then the price of that product in the exporting nation will rise. 5. The world price for a traded product will be between the domestic no-trade prices of the trading nations.