If the cross elasticity of demand between two goods is -0.56, then a fall in the price of one good leads to a ________ shift in the ________ of the other good
A) rightward; demand
B) rightward; supply
C) leftward; demand
D) leftward; supply
A
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A consumer's optimal choice occurs when the
a. consumer's valuation of the two goods equals the market's valuation of the two goods. b. consumer minimizes her expenditures. c. consumer attains the highest indifference curve. d. consumer's valuation of the two goods exceeds the market's valuation of the two goods.
Suppose the market demand for good X is given by QXd = 20 - 2PX. If the equilibrium price of X is $5 per unit then consumers' expenditure on X is
A. $50. B. $25. C. $5. D. cannot be determined from the information contained in the question.
Refer to the table below for a monopolist. If the monopolist perfectly price-discriminated and sold each unit of the product at the maximum price the buyer of that unit would be willing to pay, and if the monopolist sold 4 units, then total revenue would be:
The following question is based on the demand and cost data for a pure monopolist given in the table below.
A. $600
B. $900
C. $1000
D. $1400
When a negative externality exists, the market is said to underproduce the good connected with the negative externality.
Answer the following statement true (T) or false (F)