A fall in the price of X from $12 to $8 causes an increase in the quantity of Y demanded from 900 to 1,100 units. What is the cross elasticity of demand between X and Y?
A) 0.5
B) -0.5
C) 2
D) -2
B
You might also like to view...
When an industry supply curve increases enough to erase economic profits,
a. weaker firms exit the industry b. quantity demanded decreases, but only slightly c. all firms in the industry incur economic losses d. entry of new firms and expansion of existing firms stop e. marginal revenue increases
During George W. Bush's presidency
A. the job market was quite robust. B. The United States' federal budget deficit hit a record high. C. the federal budget surpluses in the last years of the Clinton presidency continued. D. we experienced a very high inflation rate.
Since trash generation involves an externality, the way economists might address the problem of trash generation that is most likely to be optimal is by:
A. not allowing persons to throw away more trash than is acceptable as a maximum. B. having the government require mandatory sorting and recycling of trash. C. integrating the cost of the externality into the initial price of the good. D. having the cost of the externality be paid by the government.
A technological change would cause movement along the demand curve for inputs.
Answer the following statement true (T) or false (F)