Suppose that when the price of good X falls from $6 to $4, the quantity demanded of good Y rises from 30 units to 40 units. Using the midpoint method, the cross-price elasticity of demand is
a. -0.71, and X and Y are complements.
b. -1.40, and X and Y are complements.
c. -0.71, and X and Y are substitutes.
d. -1.40, and X and Y are substitutes.
a
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Las Vegas Sands Corporation is trying to acquire 50 acres of land to build a casino resort in Pennsylvania. There are 60 houses on the land the company needs
Explain how eminent domain could be beneficial in the process of acquiring this land in terms of transactions costs and the holdout problem.
The table above gives the utility from pens and pencils. The marginal utility derived from the third pen is
A) 200. B) 155. C) 445. D) 45.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Exhibit 21-3 Potatoes and wheat output (tons per day) CountryPotatoes Wheat United States4 2 Ireland3 1 In Exhibit 21-3, the United States has an absolute advantage in producing:
A. potatoes. B. wheat. C. both. D. neither.