If the quantity of pretzels demanded decreases by 8% when the price of beer increases by 6%, the cross-price elasticity of demand between pretzels and beer is
A. -14.
B. -1.33.
C. -0.75.
D. 2.
Answer: B
You might also like to view...
The government’s budget accounts for about 80 percent of GDP in the United States.
Answer the following statement true (T) or false (F)
The above figure shows a perfectly competitive firm. If the market price is $10, the firm
A) is incurring an economic loss. B) is making an economic profit. C) is making zero economic profit. D) will immediately shut down. E) might shut down but more information is needed about the AVC.
According to economic theory, the difference between the long run and the short run is:
a. about two months. b. about two years. c. not relevant for executive decision makers. d. strictly theoretical so that in practice there is no difference between them. e. the ability for a firm to vary all resources.
It costs a furniture company $8,750 to produce 25 tables. The company's total cost will be $9,125 if it produces a 26th table. If the company produces 26 tables, then
a. its average cost is greater than its marginal cost. b. its average cost and its marginal cost are equal. c. its average cost is less than its marginal cost. d. This cannot be determined from the information given.