A positive cross-price elasticity between two goods implies that the two goods are substitutes.
Answer the following statement true (T) or false (F)
True
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Economies of scope exist when it is less expensive to produce two or more product lines in a single firm than it is to produce them separately
a. True b. False
From a neoclassical viewpoint, government should focus less on ____________.
a. long-term growth b. controlling inflation c. aggregate supply d. cyclical unemployment
Adverse shocks such as the crop failures of 1972-1973 and the oil price increases of 1974 and 1979 pushed the economy's
a. aggregate supply curve outward. b. Phillips curve inward toward the origin. c. aggregate supply curve inward. d. aggregate demand curve inward.
Suppose that in a month the price of a gallon of milk increases from $2 to $2.50. At the same time, the quantity of gallons of milk demanded decreases from 100 to 80. The price elasticity of demand for gallons of milk (calculated using the midpoint formula) is approximately:
A. 0.11. B. 0.2. C. 1. D. 1.2.