Suppose the demand function is given by Qxd = 8Px-0.5 Py0.25 M0.12 H. Then the cross-price elasticity between goods x and y is:
A. 8.33.
B. 0.50.
C. 4.00.
D. 0.25.
Answer: D
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A) the capture theory. B) share-the-gains, share-the-pains theory. C) the natural theory. D) the creative theory.
Monopoly as a market structure leads to
A. prices equal to average cost. B. quick response to economic change. C. prices that equal minimum long-run average cost. D. persistent economic profits.
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If Net Domestic Product (NDP) is $100 less than Gross Domestic Product (GDP), we know that
A. inventories increased over the year. B. inventories decreased over the year. C. depreciation equals $100. D. net investment equals $100.