In response to a price change for good Y, if the cross-elasticity of demand for good Y is positive, good X and good Y are complements
a. True
b. False
Indicate whether the statement is true or false
False
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It is often observed that the prices charged for gasoline by the various gas stations in a particular city tend to move together very closely. Is this an example of tacit collusion that should be prosecuted in the United States? Why or why not?
What will be an ideal response?
Suppose the production of DVD players can be represented by the following production function: q = L0.4K0.4. The firm currently produces q1 units. If all inputs doubled, the new level of output will equal
A) 20.4 * q1. B) 20.8 * q1. C) 0.8 * q1. D) 1.6 * q1.
Which of the following goods is most likely to have the lowest price elasticity?
A) movie tickets B) DVD rentals C) gasoline D) pasta
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 required which of the following to be traded in established, regular markets?
A. Equities B. Derivatives C. Corporate bonds D. Equities, derivatives, and corporate bonds.