The formula for calculating the cross price elasticity of demand is:
a. the change in the quantity demanded of one good divided by the change in the price of another good
b. the percentage change in demand of one good divided by the percentage change in the price of another good.
c. the percentage change in the quantity supplied of one good divided by the percentage change in the price of another good.
d. the percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.
b
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Increasing income tax rates will solve the "Social Security time bomb issue" is an example of
A) a positive economic statement. B) marginal cost exceeding marginal benefit. C) answering the "how" question. D) globalization. E) business economic policy.
All charitable donations in Richland are tax-deductible. However, it was found that the volume of charitable contributions declined significantly when the income tax rate in Richland was lowered
What is the reason behind such an outcome? Explain with an example.
People accept fiat money because: a. they can exchange it for gold whenever they want
b. they can sell the currency notes as a commodity as well. c. the government backs its value with a promise. d. they can consume it as a good if required.
Alcoa had a monopoly in the U.S. aluminum market from the late nineteenth century until the end of World War II. Which barrier to entry was the source of Alcoa's monopoly power?
A. ownership of a vital resource B. government franchises and licenses C. patents and copyrights D. economies of scale