Cross-price elasticity refers to:
A. how much the quantity demanded of one good changes in response to a change in the price of a different good.
B. how much the quantity demanded of one good changes in response to a change in its price.
C. the magnitude of the shift in demand for a good in response to a change in its price.
D. how much the quantity demanded of a good changes in response to a change in consumers' incomes.
A. how much the quantity demanded of one good changes in response to a change in the price of a different good.
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Suppose a consumer's demand function is 
.
a. What's the general equation for the own-price elasticity of demand for this consumer?
b. What's the price elasticity of demand when p=25?
c. Suppose instead that the demand function is 
. How does the equation for own-price elasticity change?
d. Continue with the demand equation in (c). Suppose p=25. What's the cross-price elasticity for x?e. Continuing with part (d), what's the cross-price elasticity when the price of y is equal to 50?
What will be an ideal response?
A mechanism for reallocating risk is:
A. risk pooling. B. dividend pooling. C. risk premiums. D. None of these statements is true.
When quotas are eliminated, losers include
A. Domestic producers. B. There are no losers when free international trade is established. C. Foreign producers. D. Domestic consumers.
The effect of legislation establishing a minimum wage above the market clearing wage is
A. a shift of the demand for labor curve. B. higher wages for all workers. C. unemployment. D. a shortage of labor.