When the price of Starbucks coffee increased by 8 percent, the quantity demanded of Peet's coffee increased by 10 percent. Calculate the cross-price elasticity of demand between Starbucks coffee and Peet's coffee
What is the relationship between the two products?
The cross price elasticity = 1.25. The two products are substitutes.
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A firm's average costs will be falling whenever its:
a. marginal costs are positive. b. marginal costs are negative. c. marginal costs are less than average costs. d. marginal costs are less than fixed costs.
The relationship between consumer spending and disposable personal income is
A) an inverse relationship. B) a direct relationship. C) a negative relationship. D) independent.
In a perfectly competitive industry, which of the following is true?
a. The competitive price is higher and quantity higher than the socially efficient point. b. The competitive price is higher and quantity lower than the socially efficient point. c. Since the industry is perfectly competitive, price and quantity are at the socially efficient levels. d. The competitive price is lower and quantity higher than the socially efficient point.
Roads, telephone lines, power facilities, and schools are examples of a nation's
A. technostructure. B. infrastructure. C. physiostructur D. sociostructure.