Suppose Target decided to lower the price on all shirts as part of its Back to School promotion. The cross elasticity of demand between pants and shirts is negative
Lowering the price on shirts will ________ the demand for pants because shirts and pants are ________. A) increase; substitutes
B) decrease; substitutes
C) increase; complements
D) decrease; complements
C
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Political scientist Elinor Ostrom won the 2009 Nobel Prize in Economics for demonstrating in detail how communities around the world
a. experience gaps in wealth and economic power. b. manage common pool resources effectively. c. see power as the ability to collaborate.
One year before maturity, the price of a bond with a principal amount of $1,000 and a coupon rate of 5% paid annually fell to $981. The one-year interest rate must be:
A. 8.5%. B. 5.0%. C. 7.0%. D. 1.9%.
The average income in a rich country, such as the United States or Japan, is more than
a. 3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria. b. 5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria. c. 10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria. d. more than 20 times the average income in a poor country, such as Indonesia or Nigeria.
The money supply is $10 million, currency held by the nonbank public is $2 million, and the reserve-deposit ratio is 0.2. Bank deposits are equal to
A. $4 million. B. $2 million. C. $8 million. D. $1.6 million.