Suppose the demand function is Qxd = 100 ? 8Px + 6Py - M. If Px = $4, Py = $2, and M = $10, what is the cross-price elasticity of good x with respect to the price of good y?
A. 0.04
B. 0.17
C. 0.21
D. 0.38
Answer: B
You might also like to view...
Everything else equal, an increase in the supply of loanable funds will
a. lower the interest rate and reduce investment spending b. lower the interest rate and increase investment spending c. increase the demand for funds d. increase the interest rate and reduce investment spending e. increase the interest rate and increase investment spending
If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?
a. an economic boom b. highly attractive profit margins c. output less than the economy's long-run potential d. a sharp increase in imports
Refer to the information provided in Figure 16.1 below to answer the question(s) that follow. 
Figure 16.1 Refer to Figure 16.1. The ________ imposed as a result of producing the efficient level of fertilizer is $250.
A. marginal private cost B. tax C. marginal social cost D. total damage
Refer to the graph shown. With an effective price floor at $8, total surplus is reduced by:
A. 45. B. 100. C. 90. D. 25.