If two goods are complementary,
a. a decrease in the price of one good will lead to a decrease in the demand for the other
b. the cross elasticity of demand is zero
c. an increase in the price of one good will lead to an increase in the demand for the other
d. the cross elasticity of demand is positive
e. a decrease in the price of one good will lead to an increase in the demand for the other
E
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In the figure above, Nike maximizes its profit if it charges ________ per pair of shoes
A) $75 B) $60 C) $72 D) $42
Tariffs are ________
A) taxes levied on goods imported into the United States B) levied by state and local governments C) the primary source of federal revenues D) taxes on goods exported from the United States
If an economy's GDP falls, then it must be the case that the economy's
a. income and saving fall. b. income and market value of all production both fall. c. income falls and market value of all production rises. d. income rises and market value of all production falls.
The percentage of consumer income spent on durable goods, nondurable goods and services have changed between 1955 and 2007 as follows:
A. Percentage spent on services has declined. B. Percentage spent on durable goods has increased. C. Percentage spent on nondurable goods and durable goods has decreased. D. Percent spent on durable goods and services has increased.