How do you interpret the value of cross-price elasticity?
What will be an ideal response?
If cross-price elasticity is negative, the two goods are complements, while if cross-price elasticity is positive, the two goods are substitutes.
You might also like to view...
In the foreign exchange market, which of the following shifts the supply curve of dollars leftward?
A) The current exchange rate falls. B) The expected future exchange rate falls. C) The current exchange rate rises. D) The expected future exchange rate rises. E) None of the above answers is correct.
Explain how does an increase in the real exchange rate affect exports and imports?
What will be an ideal response?
The most complicated form of business ownership is the sole proprietorship
Indicate whether the statement is true or false
If aggregate demand shifts left, then in the short run
a. the price level and real GDP both rise. b. the price level rises and real GDP falls. c. the price level falls and real GDP rises. d. the price and real GDP both fall.