The percentage change in the demand for one good divided by the percentage change in the price of a related good is the
A) price elasticity of demand.
B) price elasticity of supply.
C) cross price elasticity of demand.
D) income elasticity.
C
You might also like to view...
Marginal revenue product is defined as the extra:
a. output a firm would receive after hiring one more unit of resource. b. cost of hiring one more unit of resource c. revenue earned by selling one more unit of product. d. revenue earned by hiring one more unit of resource e. output received by spending one more dollar on resources
Advocates of activist policymaking point to the swift response of the Fed after September 11, 2001, as an example of effective policymaking.
Answer the following statement true (T) or false (F)
If you can make $25,000 a year teaching, $20,000 a year writing computer programs, $30,000 a year driving a cab, and $40,000 a year as an actor or actress. You have a comparative advantage in
A) teaching. B) writing computer programs C) being an actor or actress. D) one of them but we need more information to know which.
You are hired by the Bureau of Economic Analogies (BEA) as an economic consultant. The Chairperson of the BEA tells you that he believes the current unemployment rate is too low. The unemployment rate can be increased if aggregate output decreases. He wants to know what policy to pursue to decrease aggregate output by $50 billion. The best estimate he has for the MPC is 0.9. Which of the following policies should you recommend?
A. cut taxes by $10 billion and to increase government spending by $5 billion B. decrease government spending by $5 billion C. decrease government spending by $50 billion D. increase taxes by $5 billion