Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean?
A) A 1 percent decrease in the price of grapefruit juice leads to a 6 percent increase in orange juice consumption.
B) A 6 percent increase in the price of grapefruit juice leads to a 1 percent increase in orange juice consumption.
C) The demand for orange juice is 6 times greater than the demand for grapefruit juice.
D) If the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased.
A
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When a nation joins the IMF, it deposits funds into an account. These funds have a value based on a weighted average of
A) the Russian ruble, the British pound sterling, the Japanese yen, and the U.S. dollar. B) the euro, the British pound sterling, the Japanese yen, and the U.S. dollar. C) the Russian ruble, the British pound sterling, the Chinese yuan, and the U.S. dollar. D) the euro, the British pound sterling, the Chinese yuan, and the U.S. dollar.
If nominal wage rates increase by 2 percent per year and the price level increases by 5 percent per year, real wages will _____
Fill in the blank(s) with the appropriate word(s).
Explain the supply and demand of products, factors of production, the payments for the products and factors of production as described in the circular flow diagram.
What will be an ideal response?
Recall the Application about the merger of Sirius Satellite Radio and XM Satellite Radio to answer the following question(s).Recall the Application. Sirius and XM proposed the merger because they were:
A. losing money because their fixed costs were very high. B. losing money because they faced the advertisers' dilemma. C. earning duopolists' profits that were greater than zero, but knew they could earn more as a single firm. D. losing money because their variable costs were higher than the price they could charge.