Susan quit her job as an attorney to teach elementary school. She had to give up her love of fine wine and now buys box wines. What type of elasticity is represented here?
a. demand elasticity
b. supply elasticity
c. income elasticity
d. cross-price elasticity
c
You might also like to view...
Because firms produce a differentiated product, each of the firms in a monopolistically competitive market faces a demand curve that is:
A) perfectly elastic. B) perfectly inelastic. C) downward sloping. D) perfectly elastic or perfectly inelastic depending on whether the firm's output is a luxury or a necessity.
Which of the following could not serve as commodity money?
a. diamond b. gold c. paper d. fur e. silver
The manager of the bank where you work tells you that your bank has $10 million in excess reserves. She also tells you that the bank has $400 million in deposits and $375 million dollars in loans. Given this information you find that the reserve requirement must be
a. 10/400. b. 25/400. c. 35/400. d. 15/400.
If a large decrease in rent leads to a firm cutting back on the labor it uses,
A. the output effect outweighs the substitution effect. B. the substitution effect outweighs the output effect. C. the substitution and output effects are equal. D. there is no way of determining the relative strengths of the output and substitution effects.