If the cross price elasticity between Goods A and B equals -1.3, then a reduction in the price of Good B will:
a. increase the demand for Good A and increase Good A's price as a result.
b. increase the demand for Good A and decrease Good A's price as a result.
c. decrease the demand for Good A and increase Good A's price as a result.
d. decrease the demand for Good A and decrease Good A's price as a result.
a
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All of the following are part of fiscal policy EXCEPT
A) setting tax rates. B) setting government spending. C) choosing the size of the government deficit. D) controlling the money supply
Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. There can be gains from exchange
A) if Agnes specializes in the production of X and Brenda specializes in the production of Y. B) if Agnes specializes in the production of Y and Brenda specializes in the production of X. C) only if Agnes becomes faster at producing X. D) only if Brenda becomes faster at producing X or Y.
Which income distribution is more unequal and why: the income distribution in the United States or in the entire world?
What will be an ideal response?
Because of record-keeping and monetary costs, a general grant is always preferable to a categorical grant
a. True b. False