The cross elasticity between two goods has been measured at ?1.2 . How are the goods related? Explain. Give an example of goods for which this might be a reasonable measure of cross elasticity
The goods are complements. An increase in the use of one decreases the use of both. A decrease in the price of one increases the quantity demanded of one and the demand for the other. Examples include hamburgers and buns, cameras and film, cars and gasoline, etc.
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The terms of trade are acceptable if the price is ________ the seller's opportunity cost and ________ the buyer's opportunity cost.
A. above, below B. below, below C. below, above D. above, above
Which of the following contributed to the collapse of the Bretton Woods system?
a. chronic U.S. trade surpluses b. fixed exchange rates c. an insufficient gold supply d. West Germany's allowing the dollar to float against the mark e. West Germany's not wanting the dollar to appreciate
An example of a nonrenewable resource would be:
A. a computer. B. wireless technology. C. sunlight. D. None of these is considered a nonrenewable resource.
An embargo is
A. A limit to the quantity of a good that may be imported in a given time period. B. An orderly marketing agreement. C. A prohibition on exports or imports. D. A tax imposed on imported goods.