The cross-price elasticity of demand measures the
A) percentage change in the quantity demanded of one good in one location divided by the price of the same good in another location.
B) absolute change in the quantity demanded of one good divided by the absolute change in the price of another good.
C) percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.
D) percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.
C
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Which of the following would not shift the supply curve?
A) A rise in the price of the good B) A fall in the expected future price of the good C) A rise in the costs of production of the good D) A negative supply shock that destroys a portion of output
The time constraint for the consumer is
A) the amount of time for decision making. B) expressed as leisure time - time spent working = total time available. C) expressed as leisure time - sleep time = time spent working. D) expressed as leisure time + time spent working = total time available.
If a firm’s average cost is currently $150, and the marginal cost is $195, then the average cost is rising.
Answer the following statement true (T) or false (F)
A firm that shuts down in the short run experiences losses equal to its
A) total fixed costs. B) average variable costs. C) total variable costs. D) total variable costs minus its total fixed costs.