If the quantity of pretzels demanded decreases by 8% when the price of beer increases by 6%, the cross-price elasticity of demand between pretzels and beer is
A. -14.
B. -1.33.
C. -0.75.
D. 2.
Answer: B
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Suppose that only two goods are produced in an economy. If a country possesses the comparative advantage in the production of one good then it:
A. must also possess the comparative advantage in the production of the other good. B. must also possess the absolute advantage in the production of that good. C. cannot also possess the comparative advantage in the production of the other good. D. cannot also possess the absolute advantage in the production of that good.
Taxes ____ the incentive to work, since they ____ an individual's after-tax earnings
a. reduce; increase b. increase; reduce c. increase; increase d. reduce; reduce
Electronica Inc. is a mobile phone retailer who sells smartphones to high school students at easily affordable prices. The company has one marketing strategy for the entire market of high school students and focuses all its efforts on this one segment. In this scenario, Electronica Inc. is most likely using the _____ for marketing its smartphones.
a. total-market approach b. mass market approach c. concentration approach d. multi-segment approach e. differentiated approach
The given nondiscriminating monopolist should set its price at:
A. $300.
B. $250.
C. $200.
D. $150.