The cross-price elasticity of demand for a good is the:
A) percentage change in the quantity demanded for a good due to a percentage change in the consumer's income.
B) percentage change in the quantity demanded for a good due to a percentage change in the good's price.
C) percentage change in the quantity demanded for a good due to a percentage change in tax rates.
D) percentage change in the quantity demanded for a good due to a percentage change in the price of related goods.
D
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Refer to Figure 9.2. A movement from point b to point c could be caused by a simultaneous ________ and ________
A) decrease in taxes; decrease in the price of oil B) increase in the money supply; increase in the price of oil C) increase in taxes; decrease in government spending D) increase in the price of oil; massive crop failure
The disagreement value in a nonstrategic game is most closely associated with
a. opportunity costs b. fixed costs c. variable costs d. accounting costs
In sequential games, the player who moves first:
A. has a first-mover advantage only when he or she is able to make a credible threat or promise to choose a dominated strategy. B. always has a first-mover advantage. C. has a first-mover advantage only when the second mover fails to choose the dominant strategy. D. sometimes has an advantage and sometimes has a disadvantage.
The endowment effect is used to describe the mistake a consumer makes when he accounts for the monetary costs of his decisions but ignores the nonmonetary opportunity costs.
a. true b. false