For which pairs of goods is the cross-price elasticity most likely to be positive?
a. peanut butter and jelly
b. bicycle frames and bicycle tires
c. pens and pencils
d. college textbooks and iPods
c
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In the figure above, when 6,000 pizzas are produced, the marginal benefit of a pizza ________ its marginal cost, which means ________ pizza is being produced
A) exceeds; too little B) exceeds; too much C) is below; too much D) is below; too little E) equals; the efficient quantity of
Suppose the market for grass seed can be expressed as
Demand: QD = 100 - 2p Supply: QS = 3p At the market equilibrium, calculate the price elasticities of supply and demand. Use these numbers to predict the change in price resulting from a specific tax.
What is the difference between induced and autonomous expenditure? Which components of aggregate expenditure fall under which category?
What will be an ideal response?
Assume that the interest parity condition holds. Also assume that the U.S. interest rate is 8% while the U.K. interest rate is 6%. Given this information, financial markets expect the pound to
A) depreciate by 14%. B) depreciate by 2%. C) appreciate by 2%. D) appreciate by 6%. E) appreciate by 14%.