French fries and hamburgers are complements. Suppose the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. Then the equilibrium relative price of french fries ________ and the equilibrium quantity ________.
Fill in the blank(s) with the appropriate word(s).
falls; decreases
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During the winter of 2011-2012, the price of fuel oil increased enormously but the quantity demanded decreased only a little. This response indicates that the demand for fuel oil was
A) inelastic. B) elastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
Imitation as a strategy for acquiring new technology is based on the difference in effort between
a. creating it and thinking of it. b. creating it and looking it up. c. looking it up and writing it down. d. discovering it and innovating it.
If potential output exceeds actual output, eventually:
A. input prices will rise and output will fall. B. input prices will fall and output will rise. C. both input prices and output will fall. D. both input prices and output will rise.
Refer to the below table. The marginal revenue product of the fourth unit of input is approximately:
