Which of the following pairs of goods would most likely exhibit a cross price elasticity of 2.2?
a. hamburgers and fries
b. peanut butter and jelly
c. butter and margarine
d. tennis balls and tennis rackets
c
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Recent studies have shown that NAFTA has had a tremendous negative impact on the economic welfare of the U.S
Indicate whether the statement is true or false
To remedy the problem faced by low-skilled job seekers, more attention must be paid to the level of demand, not the structure of demand
Indicate whether the statement is true or false
A company finds that at the output level at which marginal cost equals marginal revenue, TC = $500, TVC = $400, and TR = $450. Your advice to the firm is
A) shut down, as TC > TR. B) reduce output to reduce the cost of production. C) increase output to reduce the per unit cost of production. D) continue to produce because loss is less than TFC.
The spending multiplier also applies to investment spending by businesses
a. True b. False Indicate whether the statement is true or false