Toothpaste and toothbrushes are complements, so the ________ elasticity of demand is ________
A) cross; positive
B) income; negative
C) cross; negative
D) income; positive
C
You might also like to view...
The slope of the budget line
a. always equals 1. b. equals income divided by price. c. equals the ratio of the prices. d. decreases as we move from left to right.
Refer to the given table.Price Per UnitColumn A Units Per YearColumn B Units Per Year$4011040$459550$508060$556570$605080 Suppose the columns in this table reflect demand and supply. If the current market price is $50, then you would expect:
A. demand to decrease and supply to decrease. B. supply to decrease. C. the market price to fall. D. the market price to rise.
One reason why adverse selection problems arise in health insurance markets is that
A) sick people are more likely to want health insurance than healthy people. B) because of advances in medical technology, people are living longer. These medical advances are costly and drive up the price of insurance for everyone. C) fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance. D) the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years. As older citizens retire, more and more of their medical bills will have to be paid by younger workers.
An index based on a mail survey of 5,000 households by the Conference Board that measures households' perceptions of general business conditions, available jobs in the households' local area, and expected personal family income in the coming six
months is called the: A) Consumer Sentiment Index. B) Consumer Confidence Index. C) Consumer Satisfaction Index. D) Consumer Consumption Index.