Based on data in the table above, use the midpoint method to determine the cross elasticity of demand for ice cream and cake
A) The cross elasticity is -0.75.
B) The cross elasticity is -1.75.
C) The cross elasticity is -0.83.
D) The cross elasticity is -4.0.
E) The cross elasticity is -1.33.
A
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A daily auction at the Chicago Board of Trade sets
A) Federal funds rate. B) 10-year bond rate. C) Discount rate. D) Prime rate. E) Credit cards rate.
According to the original Keynesian model, there would be counter-cyclical movements of the real wage rate in response to changes in aggregate demand because
A) firms react to nominal wages and workers respond to real wages. B) firms react to real wages and workers respond to the expected real wage. C) firms are on their labor demand curve and workers are off their labor supply curve. D) firms are off their labor demand curve and workers are on their labor supply curve.
Which of the following cases represent the smallest increase in the real national debt?
a. The price level increases by 200 percent and the nominal debt increases by 200 percent. b. The price level increases by 200 percent and the nominal debt increases by 100 percent. c. The price level increases by 200 percent and the nominal debt increases by 500 percent. d. The price level increases by 100 percent and the nominal debt increases by 300 percent. e. None of the above
Allocative inefficiency happens in a monopoly because at the profit-maximizing output level:
A. P > ATC B. P > MR C. P > MC D. P > AVC