The cross price elasticity for Sprite for a change in the price of 7up is likely to be
A. negative and more negative than -1.
B. zero.
C. negative but less negative than -1.
D. positive.
Answer: D
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According to the law of demand, if other relevant factors remain unchanged, then a rise in the price of a commodity will cause
a. a reduction in the equilibrium quantity. b. excess supply. c. suppliers to reduce their production in reaction to the lower demand. d. a fall in the quantity demanded.
List the major non-price determinants of demand
What will be an ideal response?
Automatic stabilizers are government programs that tend to push the federal budget toward surplus as the real GDP rises and toward deficit as the real GDP falls
a. True b. False Indicate whether the statement is true or false
Suppose seller X is willing to sell one good X for $5, a second good X for $10, a third for $16, a fourth for $25, and the market price is $20. What is seller X's producer surplus?
A. $15 B. $20 C. $22 D. $29