The cross price elasticity of demand for a good x is the percentage change in the quantity demanded of good x in response to a given percentage change in
A) income.
B) the price of good x.
C) the price of good y.
D) the quantity demanded of good y.
C
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To maximize its profit, a perfectly competitive firm produces so that ________ and a single-price monopoly produces so that ________
A) MR = MC; MR > MC B) MR > MC; MR = MC C) MR = MC; MR = MC D) MR > MC; MR > MC E) P = ATC; P = ATC
According to the intertemporal substitution effect, a fall in the price level will
A) decrease the real value of wealth, which increases the quantity of real GDP demanded. B) cause the interest rate to fall so that investment increases and the quantity of real GDP demanded increases. C) increase net exports, which causes the quantity of real GDP demanded to increase. D) increase the real value of wealth, which raises the interest rate so that the quantity of real GDP demanded decreases.
Why are property rights important in economic development?
What will be an ideal response?
An increase in the price of off-road vehicles will result in
A) a decrease in the supply of off-road vehicles. B) a larger quantity of off-road vehicles supplied. C) an increase in the demand for off-road vehicles. D) a smaller quantity of off-road vehicles supplied.