Two items which have a positive cross price elasticity of demand are referred to as
A. complements.
B. substitutes.
C. inferior goods.
D. luxury goods.
Answer: B
You might also like to view...
What is the real interest rate if the nominal interest rate is 7 percent and the expected inflation rate is 7 percent?
Suppose demand can be described with the equation Q = 900?5P and supply with the equation Q = 100 + 5P. Complete the following table. Determine the equilibrium price and quantity. ? Quantity Quantity Surplus/ Price Demanded Supplied Shortage $100 _____ _____ _____ 95 _____ _____ _____ 90 _____ _____ _____ 85 _____ _____ _____ 80 _____ _____ _____ 75 _____ _____ _____ 70 _____ _____ _____ 65 _____ _____ _____ 60 _____ _____ _____ ? ?
What will be an ideal response?
Refer to the table below. Relative to Free Cows, the quantity that maximizes the expected profit for Happy Cows is ________ sensitive to demand changes, which makes an accurate forecast ________ valuable to the managers of Happy Cows.
Happy Cows and Free Cows are two separate perfectly competitive dairy farms. The table above shows the respective firms' marginal cost at various production levels.
A) less; more
B) more; less
C) more; more
D) less; less
The real rate of interest is 4% and the anticipated rate of inflation is 1%. What is the nominal rate of interest?
A) 1% B) 3% C) 4% D) 5%