For which of the following pairs of goods is the cross elasticity of demand positive?
A) tennis balls and tennis rackets
B) videotapes and laundry detergent
C) airline trips and textbooks
D) beef and chicken
D
You might also like to view...
An actuarially fair return means
A. returns on investments are indexed to the stock market. B. returns on investments have to be positive. C. benefits received, on average, would be equal to the premiums paid. D. premiums for insurance are generally paid by the government.
If the four-firm concentration ratio in an industry increases, the industry
a. must have become more competitive. b. must have become a monopoly. c. must have become less competitive, although not necessarily a monopoly. d. may or may not have become less competitive.
The variability of business profits:
A. Helps explain the instability of investments over time B. Does not affect investment spending, which depends on expected profits not current profits C. Explains why the durability of capital goods is variable D. Causes the variations in consumption spending over time
If the demand for a good is relatively inelastic, this means that consumer purchases of the good are
a. not very sensitive to the price of the good. b. highly sensitive to the price of the good. c. unrelated to the price of the good. d. unaffected by changes in the income level of consumers.