The value of cross elasticity of demand between orange soda and grape soda is
a. negative
b. positive
c. 0
d. between –1 and 0
e. less than –1
B
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If the price of hair styling increases, then
A) hair styling salons hire fewer workers but makes more profit. B) hair stylists demand an increase in wages and the salons hire fewer workers. C) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts leftward. D) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts rightward.
A demand curve for a Giffen good would be
A) upward sloping. B) downward sloping. C) horizontal. D) vertical.
Which of these is most likely to lower the velocity of money?
a. A commercial innovation that facilitates exchange b. A low inflation rate c. A decline in the effectiveness of money as a store of wealth d. A high inflation rate e. A weekly pay for workers instead of a monthly pay
Which of the following would make the equilibrium real interest rate decrease and the equilibrium quantity of loanable funds increase?
a. The demand for loanable funds shifts right. b. The demand for loanable funds shifts left c. The supply of loanable funds shifts right. d. The supply of loanable funds shifts left.