Suppose the cross-price elasticity of demand between peanut butter and jelly is -2.50 . This implies that a 20 percent increase in the price of peanut butter will cause the quantity of jelly purchased to
a. fall by 8 percent.
b. fall by 50 percent.
c. rise by 8 percent.
d. rise by 50 percent.
b
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Papa Ray owns a pizzeria. He is more efficient at making pizza than anyone he could hire. Does this mean that he should make all of the pizzas himself?
What will be an ideal response?
In 2005, fewer than one million workers were involuntarily employed on a part-time basis
Indicate whether the statement is true or false
To be binding, a price floor must be set above the equilibrium price
a. True b. False Indicate whether the statement is true or false
A fiscal stimulus was initiated by President Obama in response to the economic downturn of 2008-2009 . At that time, the president's economists estimated the multiplier to be
a. 3.2 for government purchases and 2.0 for tax cuts. b. 2.4 for government purchases and 1.4 for tax cuts. c. 1.6 for government purchases and 1.0 for tax cuts. d. 1.6 for government purchases and 0.4 for tax cuts.