When two goods have positive cross elasticities of demand and negative income elasticities, they are:
a. Normal and substitutes
b. Normal and complements.
c. Inferior and substitutes.
d. Inferior and complements.
c
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At a recent company meeting, Ravi Batra, sales manager of Life's a Beach, a surfboard producer announced, "We have increased our sales by 13 percent in just 9 months
" Suppose 9 months ago, its sales amounted to $245,000, what is the value of its sales today? A) $31,850 B) $207,638 C) $276,850 D) $359,905
If the banking sector borrows internationally and lends locally, how does this intensify a financial crisis?
What will be an ideal response?
What happens in a perfectly competitive industry when economic profit is greater than zero?
A) Existing firms may get larger. B) New firms may enter the industry. C) Firms may move along their LRAC curves to new outputs. D) There may be pressure on prices to fall. E) All of the above may occur.
If the price elasticity of demand for Cheer detergent is 3.0, then a
a. 12 percent drop in price leads to a 36 percent rise in the quantity demanded b. 12 percent drop in price leads to a 4 percent rise in the quantity demanded c. $1,000 drop in price leads to a 3,000-unit rise in the quantity demanded d. $1,000 drop in price leads to a 333-unit rise in the quantity demanded e. 12 percent rise in price leads to a 36 percent rise in the quantity demanded