The extent to which the demand for a good changes when the price of a substitute or complement changes, other things remaining the same, is measured as the
A) income elasticity of demand.
B) cross elasticity of demand.
C) price elasticity of demand.
D) price elasticity of supply.
E) cross income elasticity of demand.
B
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Refer to A Negative Externality Problem. Absent any intervention, the competitive market will produce
Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation. a. 40 units. b. 45 units. c. 55 units. d. 60 units
?Recently, there has been an increase in the market demand for products of firms in manufacturing industries. The production of many of these products requires the skills of welders. Because welding is a dirty and dangerous job compared with other? occupations, in recent years fewer people have sought employment as welders.
The federal budget went $161 billion in fiscal year 2007 to $1 trillion in the next two to three years. What are the main factors that contributed to this increase?
What will be an ideal response?
In an oligopolistic industry, the price firms charge and the quantity they produce would be the same as if the industry were a monopoly if
A. the market is contestable. B. the oligopolists collude. C. one of the oligopolists acts as a dominant firm price leader. D. the oligopolists behave as Cournot assumed.