We would expect the cross-price elasticity of demand between coffee and
A. tea, and coffee and cream to both be negative.
B. tea, and coffee and cream to both be positive.
C. tea to be positive, but negative between coffee and cream.
D. tea to be negative, but positive between coffee and cream.
Answer: C
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In the short run, firms increase output
A) only by increasing the size of their plant. B) only by decreasing the size of their plant. C) only by increasing the amount of labor used. D) only by decreasing the amount of labor used. E) either increasing the amount of labor used or increasing the size of their plant.
Refer to Scenario 17.1. The lowest level of y* that can be set and still have only the high-productivity people meet it is
A) 16. B) 13 1/3. C) 13. D) 8. E) 0.
If the marginal propensity to consume is 0.5, the marginal propensity to save is 0.5.
Answer the following statement true (T) or false (F)
Suppose that the price of bread rises. This rise could be the result of
A) a decrease in the supply of bread. B) an increase in the supply of bread. C) a decrease in the demand for bread. D) Both answers A and C are correct. E) Both answers B and C are correct.