The cross price elasticity of demand between two goods is 50. We may conclude that
A) the two goods are very complementary and probably are sold together.
B) the two goods are poor substitutes for each other.
C) the demand for one of the goods is likely to be fairly elastic and the demand for the other good is likely to be fairly inelastic.
D) the demand for each of the goods is likely to be very elastic.
D
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When logging in the Pacific Northwest destroys forests that hikers would have used for eco-tourism, the destruction of the trails is an example of
A) an external cost. B) a private cost. C) a government cost. D) an external benefit. E) None of the above answers is correct.
After 2003, The Federal Reserve usually keeps the discount rate
A) above the target federal funds rate. B) equal to the target federal funds rate. C) below the target federal funds rate. D) equal to zero.
Command economies strictly rely on sophisticated input-output analysis to allocate resources.
Answer the following statement true (T) or false (F)
A new idea was introduced in macroeconomic analysis during the early 1970s to describe the unusual combination of high inflation and high rates of unemployment. It was
a. stagflation b. the business cycle c. fine-tuning d. crowding out e. cost-push inflation