If goods X and Y are such that the cross price elasticity between them is negative, and if the income elasticity of X is negative, then these goods are:
a. inferior complements.
b. luxury complements.
c. income elastic substitutes.
d. normal substitutes.
e. income elastic complements.
a
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The figure above shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates is a monopoly that charges one price to all customers, then consumer surplus is ________ and it creates a deadweight loss of ________
A) $800; $400 B) $200; $100 C) $400; $200 D) $0; $200
The relationship between the overall price level in the economy and total production by firms is shown in the:
A. aggregate demand curve. B. aggregate supply curve. C. inflation rate. D. business cycle.
Which of the following is true when the velocity of money falls?
a) an increase in the money supply will have less effect on nominal gross national product b) a change in the money supply will affect output only c) the fed will decrease the money supply d) output will be greater for a given money supply e) the public will increase its holdings of assets other than money
The change in total cost resulting from a one-unit increase in the change in quantity is:
A. average variable cost. B. marginal cost. C. average total cost. D. opportunity cost.