The cross-price elasticity of demand between milk and soft drinks is likely to be
a. negative because the goods are complements
b. positive because the goods are complements
c. negative because the goods are substitutes
d. positive because the goods are substitutes
e. 0 because the goods are not usually consumed by the same person at one time
D
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Which of the following variables will shift the classical aggregate demand curve?
a. An increase in government spending b. A decrease in taxes c. An increase in autonomous investment expenditures d. An increase in the money stock e. All of the above
Taxes, subsidies, and monopolies help us achieve allocative efficiency
a. True b. False Indicate whether the statement is true or false
Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effect of new entrants into a perfectly competitive market
The figure below presents information for a one-shot game.Firm AFirm B??Low PriceHigh Price?Low Price(2,2)(10,-8)?High Price(-8,10)(6,6)What are secure strategies for firm A and firm B respectively?
A. (high price, low price) B. (high price, high price) C. (low price, low price) D. (low price, high price)