If the cross-price elasticity of demand between two goods is positive, then
a. consumers are being irrational
b. supply is elastic
c. the goods may have similar uses
d. the goods may go well together in consumption
e. one good must be a necessity
C
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Consider a consumer of baked beefsteaks and fried fish fillets. Suppose the price of a plate of baked beefsteak is $8 and that of fried fish fillets is $10 at a restaurant. If the marginal utility of baked beefsteak to the consumer is 20 units, compute the marginal utility of fried fish fillets, assuming that the consumer is in equilibrium
a. 12 units b. 20 units c. 25 units d. 80 units
Suppose a monopolist faces the following demand curve.
If you were to draw the monopolist's marginal revenue curve, it would:
A. lie on top of the demand curve. B. have a slope equal to the reciprocal of the slope of the demand curve. C. intersect the vertical axis at $35. D. intersect the horizontal axis at 35.
A nation can finance a deficit on its current account with
A. a surplus on its capital account. B. a deficit on its capital account. C. official purchases of foreign currencies with its own currency. D. purchases of gold from foreign currencies with its own currency.
In making labor supply decisions, ________ weigh the market wage against the value of leisure and time spent in unpaid household production.
A. households B. financial markets C. businesses D. None of the above is correct.