The cross-price elasticity of demand between butter and margarine is most likely
a. positive, since the goods are substitutes
b. positive, since the goods are complements
c. negative, since the goods are complements
d. negative, since the goods are substitutes
e. zero, since the goods are both normal
A
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A rent ceiling
A) increases the quantity of rental units supplied. B) cannot change the market price. C) set above equilibrium price has no effect. D) generally aims at insuring that landlords receive a higher rent than would otherwise be the case.
If the market price is less than a perfectly competitive firm's average total cost, what sort of profit or loss is the firm making?
What will be an ideal response?
The prices college students and faculty members pay for Apple computers are lower than the prices Apple charges on its Web site and in retail stores. Apple charges lower prices to college students and faculty members because
A) college students and faculty members have a more elastic demand for computers than the general public. B) college students and faculty members typically buy more supplies from Apple (print cartridges, paper, etc.,) than the general public. C) college students and faculty members have a more inelastic demand for computers than the general public. D) Apple can deduct from its federal taxes some of the costs of the computers it sells to college students and faculty members.
An externality
A) may be positive or negative. B) means a rapidly rising cost borne by consumers. C) is the cost of producing a good outside the United States. D) is the indirect cost, the overhead, of producing a product.