Because Product X has a large positive income elasticity, it is likely that the product
A) has many good substitutes.
B) has few good complements.
C) is a necessity.
D) is a luxury.
D
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Refer to the table below. Suppose the columns in this table reflect demand and supply. At a price of $30:Price PerUnitColumn A UnitsPer YearColumn B UnitsPer Year$2010040$309550$408060$506570$605080
A. there will be an excess supply of 45 units. B. there will be an excess demand of 45 units. C. the market will be in equilibrium. D. there will be an excess demand of 95 units.
How do you think the theory of contestable markets has been used as a means of arguing for weaker enforcement of antitrust laws? Explain
What will be an ideal response?
The Arrow-Pratt measure of risk aversion is
A) negative if a person is risk averse. B) greater than one if a person is risk averse. C) negative if a person is risk loving. D) None of the above.
The net benefits of entering into an OCA are calculated by:
A) measuring the symmetry between the political structures of the nations. B) measuring the variability of exchange rates between the nations. C) comparing the efficiency benefits of market integration versus the costs of abandoning discretionary monetary policy. D) comparing the trade balances between the nations with growth in GDP for each nation.