If the quantity of peanut butter demanded increases by 4% when the price of jelly decreases by 2%, the cross-price elasticity of demand between peanut butter and jelly is
A. -4.
B. -2.
C. -0.5.
D. 2.
Answer: B
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A) a public good exists. B) a market failure exists. C) consumer sovereignty exists. D) a free-rider problem exists.
A regulated monopoly is a monopoly which can charge any arbitrary price for its product
a. True b. False Indicate whether the statement is true or false
Discretionary policy calls for continual adjustments to the money supply and is associated with the monetarist perspective.
a. true b. false
The legal system provided by the government is necessary for the smooth working of markets because
A. it defines and protects property rights. B. it keeps criminals off of the streets. C. it is set up in the U.S. constitution. D. it ensures that producers maximize their profits.