In the above table, the cross price elasticity of demand for good Y with good X when PX rises from $10 to $12 is
A) +0.29.
B) +1.83.
C) +0.58.
D) -0.58.
C
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Which of the following pairs of goods has a negative cross-price elasticity?
A) Pens and paper notebooks B) Nokia and Samsung cell phones C) Compact Disks (CDs) and electronic music files D) Motorcycles and typewriters
A tax may be used as a corrective device in the case of a negative externality because it will __________ marginal private costs and __________ supply.
A. increase; decrease B. increase; increase C. decrease; decrease D. decrease; increase
The federal funds rate is the short-term interest rate that banks charge one another for loans.
Answer the following statement true (T) or false (F)
A highly liquid asset
A. must be held for a substantial period of time. B. generally has a very limited market for its resale. C. can be disposed of easily without loss of value. D. has high transaction costs associated with its sale.