When two goods are substitutes, their cross price elasticity of demand
A. infinity.
B. negative.
C. 0.
D. positive.
Answer: D
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When the change in unplanned inventories is positive, then
A) planned inventories will increase in order to return to equilibrium. B) real GDP is less than aggregate planned expenditure. C) real GDP equals aggregate planned expenditure. D) real GDP is larger than aggregate planned expenditure. E) economic growth will occur as the economy returns to equilibrium.
Mary can clean 20 windows per hour or type 30 pages of paper per hour. Tom can clean 18 windows per hour or he can type 25 pages of paper per hour. Based on this
A) Mary has comparative advantages in activities. B) Tom has comparative advantages in both activities. C) Tom has a comparative advantage in cleaning windows. D) Mary has a comparative advantage in cleaning windows.
According to the classical view,
a. velocity is constant, which means changes in price will cause changes in price or quantity. b. quantity is constant, which means changes in the money supply could cause either changes in velocity or changes in prices. c. velocity and price are constant so that changes in the money supply causes changes in quantity. d. velocity and quantity are constant so that changes in the money supply cause changes in prices. e. velocity is constant while quantity is variable so that changes in the money supply change both price and quantity.
The opportunity cost of attending a college basketball game tonight would increase if: a. Your friend offers to pay you more for your ticket, because he really wants to go
b. Your favorite player on the teams is injured and will not play tonight. c. Your economics TA decides to offer a review session, for which attendance will count 10% of your course grade, at the same time as the game d. Either a. or c. occurs