When the price of bread increases by 3 percent, the quantity demanded of crackers increases by 2 percent. The cross elasticity of demand between crackers and bread is
a. 0.67
b. 1.5
c. 2.5
d. 3.2
e. 5.0
A
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Based on the analysis of Alice Hanson Jones, what colonial region showed the most unequal distribution of wealth?
a. New England. b. Middle Colonies. c. South. d. Distribution was similar in all colonies.
A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value. The shoe manufacturer believes that the advertisement will make
a. The demand for its product less elastic b. His customers less price sensitive c. Him able to raise prices d. None of the above
In the long run, the movement of firms into and out of a perfectly competitive market will influence price by
a. shifting the market demand curve b. shifting the market supply curve c. making the market supply curve less elastic d. making the market demand curve less elastic e. shifting the supply curve for each firm in the market
Which of the following would be omitted in the calculation of GDP?
a. a two-year old house sold on the market b. an apple sold at a supermarket c. a box of cereal sold at a convenient store d. a newly-made souvenir sold at a resort