Two items which have a negative cross price elasticity of demand are referred to as
A) luxury goods.
B) inferior goods.
C) substitutes.
D) complements.
Ans: D) complements.
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An increase in price:
A. cannot cause a quantity effect. B. cannot cause a price effect. C. causes a decrease in revenue resulting from selling fewer units and a simultaneous increase in revenue resulting from receiving a higher price. D. causes an increase in quantity demanded.
Which of the following is most likely a fixed cost? a. Raw materials costs
b. Shipping charges. c. Property insurance premiums. d. Fuel costs for running the factory.
A relative price is:
A. the price of a specific good in comparison to the prices of other goods and services. B. the percentage change in a price index such as the CPI. C. the rate of inflation. D. a measure of overall prices at a particular point in time.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C