Cross elasticity of demand for
a. substitutes will normally be positive.
b. complements will normally be positive.
c. substitutes will normally be negative.
d. complements will normally be infinite.
a
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Using the data in the above table, the average fixed cost of producing 9 units per day is
A) $2.22. B) $5.00. C) $5.55. D) $20.00.
Kim is paid $50,000 per year, and pays an annual income tax of 10 percent. Due to an inflation rate of 10 percent, her pay increases to $55,000, which puts her in a higher tax bracket where she must pay 20 percent. Kim has experienced:
A. bracket costs. B. the deflationary cost of tax distortion. C. an increase in her purchasing power. D. the inflationary cost of tax distortion.
Suppose the market price for one unit of a good is $12.50, and 50 units will be exchanged at that price. If a price floor is imposed at $12.00 per unit, the price will: a. fall to $12.00, and quantity will fall below 50 units
b. fall to $12.00, and quantity will remain at 50 units. c. remain at $12.50, and quantity will rise above 50 units. d. remain at $12.50, and quantity will remain at 50 units.
An increase in the supply of dollars and an increase in the demand for Japanese yen
A. increases the value of the yen. B. does not change the exchange rate between dollars and yen. C. increases the value of the dollar. D. increases the yen price of dollars.