If the price of one good increases by 3 percent and the quantity demanded of another good increases by 2 percent, the cross elasticity is ________ and the two goods are ________
A) 2/3, substitutes
B) 2/3, complements
C) 3/2, complements
D) 3/2, substitutes
A
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If a bank receives $1,000 in currency as a new deposit, its ability to make loans increases by $1,000
a. True b. False Indicate whether the statement is true or false
Critics of supply-side policies argue that the effects of tax cuts are too small to be effective policy
a. True b. False Indicate whether the statement is true or false
The supply curve for a good is a line that relates
a. profit and quantity supplied. b. quantity supplied and quantity demanded. c. price and quantity supplied. d. price and profit.
An advance in technology which increases labor productivity will shift the:
A. labor demand curve to the left. B. MRP curve to the left. C. MP curve downward. D. labor demand curve to the right.