Cross-price elasticity of demand would measure which of the following examples?
a. the effect a decrease in the price of marshmallows has on the supply of butter
b. the effect an increase in the price of soap has on the sale of this product
c. the effect an increase in the price of printers has on the sale of print cartridges
d. the effect a decrease in the price of pillows has on the sale of this product
c. the effect an increase in the price of printers has on the sale of print cartridges
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In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will
A) rise. B) not change. C) fall. D) Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.
If the bid value of a Treasury bond is listed as "112:16", it means that the buyer is willing to pay $1,125 for the bond.
Answer the following statement true (T) or false (F)
Long-run economic profit does not exist for fixed factors like land because
A) bidding drives up the price of the factor until no economic profit exists. B) there is no market for such factors. C) these factors have L-shaped isoquants. D) these factors will earn economic profits.
When there is a building that is used for production, but no one has clear property rights to it
A. this is known as "dead capital" and causes inefficient production. B. this is known as "dead capital" and causes no production. C. resources are guided to their best use by "the invisible hand." D. this is known as "dead capital" and causes efficient production.