If the cross elasticity of demand is -5 between french fries and orange drink, then french fries
A) and orange drink are complements.
B) and orange drink are substitutes.
C) are a normal good and orange drink is an inferior good.
D) are an inferior good and orange drink is a normal good.
B
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For which of the following would the income effect of a price change be greatest?
a. ballpoint pens b. air travel to Australia c. chewing gum d. haircuts e. college textbooks
When making a rational decision which requires the consideration of costs and benefits involved, the opportunity cost of a decision is often not taken into consideration when indeed it should be
a. True b. False Indicate whether the statement is true or false
An example of an externality is the impact of
a. bad weather on the income of farmers. b. the personal income tax on a person's ability to purchase goods and services. c. pollution from a factory on the health of people in the vicinity of the factory. d. increases in health care costs on the health of individuals in society.
Which of the following is a price ceiling/ cap?
A. A regulation requires cable service to be provided for no more than 30$ a month B. Walmart promises to have the lowest prices C. Winco Foods sells organic milk at 8$ per gal D. A regulation sets the minimum price of ethanol at 50 cents per gal