The cross-price elasticity of demand between Texaco gasoline and Mobil gasoline sold at the same intersection would be
a. positive
b. negative
c. 0
d. 1.0
e. -1.0
A
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Markets are best defined as
A) arrangements where buyers and sellers get together to buy and sell. B) specific geographic locations where people get together to buy and sell. C) hypothetical constructs used to analyze how people form their tastes and preferences. D) places where people can inspect goods and services carefully.
Assume the graph shown represents the market for pizzas sold in an hour. Which of the following could be a reason S2 to S1?
A. The price of pizza sauce has increased.
B. The price of pizza went down.
C. The price of labor for pizza shops went down.
D. People just don’t have preferences for pizza anymore.
In a monopoly, consumer surplus is
A) larger than under perfect competition. B) is equal to that under perfect competition. C) smaller than under perfect competition. D) None of these choices is true.
Which of the following is true of long-run consumption functions?
a. Autonomous consumption is equal to zero in the long-run. b. The long run consumption functions are steeper than short run consumption functions. c. The marginal propensity to consume for the long run consumption function is almost equal to zero. d. The autonomous consumption is negative in long run consumption functions. e. The long run consumption function is represented by a straight line parallel to the horizontal axis.