Suppose that when the price of good X changes, the quantity of good Y demanded remains the same. The cross price elasticity of demand is
A) zero.
B) positive.
C) negative.
D) either positive or negative.
A
You might also like to view...
Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts ________, the equilibrium price will ________
A) rightward; decrease B) leftward; decrease C) rightward; increase D) leftward; not change E) rightward; not change
In order for a Pigouvian tax to be efficient, the amount of revenue raised plus the economic value of the reduction in pollution must together be larger than the loss in consumer and producer surplus.
Answer the following statement true (T) or false (F)
If MPK = 3, and MRTS = -4 what is MPL?
A) 12 B) -12 C) 4/3 D) -4/3
Fiscal policy is the management of aggregate demand through changes in taxes and government spending
a. True b. False Indicate whether the statement is true or false