The cross elasticity of demand for complementary products must:
a. be greater than one.
b. be less than one.
c. be zero.
d. exceed zero.
e. be negative.
e
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In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue
(Source: New York Times, July 28, 2012 ) We learn from the article that despite the larger quantity of lobster caught, the total revenue of the fisherman decreased. This fact means that the demand for lobster is A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic.
What does it mean when one currency is "pegged" against another currency?
What will be an ideal response?
Explain how a country with a current account surplus is a ripe candidate for currency revaluation
What will be an ideal response?
Refer to Figure 12.4. The increase in consumer wealth resulting from the housing bubble is best represented by a movement from
A) point A to point B. B) point B to point D. C) point D to point C. D) point C to point A.