A measure of the responsiveness of the demand for one good to the percentage change in the price of another good is
A) price elasticity of demand.
B) price elasticity of supply.
C) cross price elasticity of demand.
D) income elasticity.
Answer: C
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The above figure shows the PPF for a country that produces computers and computer factories. The nation's production possibilities frontier is PPF0. At which of the following production points would the economy grow most rapidly?
A) Point A B) Point B C) Point C D) It makes no difference among the three points because they are all production efficient. E) More information is needed to answer the question.
If the Canadian government raises it budget deficit, then Canada's net capital outflows will
a. increase, so its exchange rate will rise. b. increase, so its exchange rate will fall. c. decrease, so its exchange rate will rise. d. decrease, so its exchange rate will fall.
The ______________ the gap between the tuition a college student pays and the equilibrium tuition for that college, the _____________ likely the student's instructors will be on time and attentive during their office hours
A) larger; less B) smaller; more C) larger; more D) smaller; less E) a and b
The inflation tax is an:
A. implicit tax on the holders of cash and the holders of assets specified in nominal terms. B. implicit tax on the holders of cash and the holders of assets specified in real terms. C. explicit tax on firms that raise their prices. D. explicit tax on wealth.