The price elasticity of demand between rifles and bullets is likely to be:
A. negative, because the goods are complements.
B. positive, because the goods are complements.
C. negative, because the goods are substitutes.
D. positive, because the goods are substitutes.
Answer: A
You might also like to view...
The monopolist's outcome in the long run differs from that of the perfectly competitive firm in that it:
A. has zero profits in the long run. B. charges a price above average total costs. C. charges a price where marginal costs equal average revenue. D. charges a price equal to MC.
Expansionary monetary policy involves actions that:
A. reduce the money supply in order to decrease aggregate demand. B. increase the money supply in order to decrease aggregate demand. C. reduce the money supply in order to increase aggregate demand. D. increase the money supply in order to increase aggregate demand.
In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted jobs. What is the unemployment rate in this town?
A. 11.0 percent B. 10.0 percent C. 13.7 percent D. 14.5 percent
Which of the following supports the contention that monopolistic competitors have a strong incentive to engage in R&D?
A. Entry to monopolistic competitive industries is relatively easy and thus profit from innovation is quickly competed away. B. Most monopolistic competitive industries are decreasing-cost industries. C. The desire to differentiate products from competitors may motivate monopolistic competitors to engage in R&D. D. Monopolistic competitors have large retained earnings that are available to finance R&D.