Considering the concept of cross-price elasticity, if two goods are complements:
A. an increase in the price of one will cause a decrease in the demand for the other.
B. an increase in the price of one will cause an increase in the demand for the other.
C. a decrease in the price of one will cause a decrease in the demand for the other.
D. the cross-price elasticity is positive.
A. an increase in the price of one will cause a decrease in the demand for the other.
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Oligopoly describes a market with:
A. many sellers. B. one seller. C. only a few sellers. D. few or many sellers, but only one buyer.
Suppose a bond sells for $2,000 and pays $200 per year in interest. What will happen to the current interest rate if the price of the bond changes to $1,800?
a. It decreases by 10 percentage points. b. It increases by 10 percentage points. c. It remains unchanged. d. It increases by 1 percentage point. e. It decreases by 1 percentage point.
As a general rule, the marginal utility derived from consuming a good will be less
a. if less rather than more of the good is consumed b. as more of the good is consumed c. only when total utility is at a maximum d. only when the good is inferior e. when less of another good is consumed
Inefficient use of resources is shown on the production possibilities curve
A) by an inward shifting of the curve. B) by a point inside the curve. C) by a point near the top of the curve. D) by a point outside the curve.