If the cross-price elasticity of demand between two goods is positive, we can assume that the two goods in question are:
A) complements.
B) substitutes.
C) inferior goods.
D) totally unrelated to one another.
B
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It is easier to under-report income in industries that deal with a lot of cash.
A. True B. False C. Uncertain
Minimum wage laws create unemployment for low-skilled workers because the legal minimum wage is set
A) above the market wage, causing the quantity of labor supplied to be greater than the quantity of labor demanded. B) below the market wage, causing the quantity of labor supplied to be greater than the quantity of labor demanded. C) above the market wage, causing the quantity of labor supplied to be less than the quantity of labor demanded. D) below the market wage, causing the quantity of labor supplied to be less than the quantity of labor demanded.
A decrease in the quantity of resources
A) shifts the PPF leftward. B) shifts the PPF rightward. C) moves the economy up a given PPF. D) moves the economy down a given PPF.
Refer to Table 10.1. If the price of output is $2 per unit and we observe the firm hiring four workers, if the firm is maximizing profit, the wage rate must be between ________ and ________.
A. $40; $50 B. $50; $90 C. $80; $100 D. $320; $500