The cross-price elasticity of demand is the percentage change in price divided by the percentage change in the price of another good.
Answer the following statement true (T) or false (F)
False
The cross-price elasticity of demand is the percentage change in quantity divided by the percentage change in the price of another good.
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Suppose the consumer's indifference curves are concave (i.e., bowed away from the origin) instead of convex. In this situation,
a. along an indifference curve, the marginal value of X is falling as more X and less Y is consumed. b. all baskets on the budget line give the consumer the same level of satisfaction. c. the marginal value of X must equal PX/PY at the consumer's optimum. d. the consumer's optimum is always a corner solution.
The World Trade Organization (WTO) was organized as a successor to the
A) IMF. B) UN. C) UNCTAD. D) GATT. E) the World Bank.
Suppose the Christmas trees market is perfectly competitive. An owner is currently earning a profit of $1,000, the cost of producing and selling an additional Christmas tree is $25, the current market price is $20. The owner
A) should sell more trees. B) should not sell more trees. C) should advertise in the market to promote his sales. D) is not maximizing his profits.
In Figure 30.1, the labor supply could shift from S1 to S2 due to all of the following except
A. A decrease in the attraction of leisure activities. B. An increase in the number of workers willing to work in this labor market. C. Fewer workers preferring to work in this labor market. D. A decrease in the payroll tax on workers.