In the above table, the cross price elasticity of demand for good Z with good Y when PY rises from $15 to $18 is
A) -2.20.
B) +2.20.
C) +1.10.
D) -1.10.
D
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With everything else the same, in the foreign exchange market which of the following increases the supply of U.S. dollars?
I. a fall in the U.S. interest rate II. a fall in interest rates in foreign countries III. a rise in expected future exchange rate A) I only B) I and II only C) I and III only D) I, II, and III
In the aggregate expenditures model, if aggregate expenditures (AE) equal $6 trillion and GDP equals $7 trillion, then:
a. inventory depletion equals ?$1 trillion. b. inventory accumulation equals $1 trillion. c. investment equals $1 trillion. d. investment equals ?$1 trillion.
The price elasticity of demand is the __________________ change in the quantity demanded of a good or service divided by the percentage change in the price.
a. quantity b. percentage c. relative d. absolute
Suppose that the total utility of consuming the first piece of chewing gum in a packet is 30. This means that marginal utility of consuming the first piece of gum is:
A. less than 30. B. zero. C. 30. D. more than 30.