If a 1 percent decrease in the price of one good generates a 3 percent increase in the quantity demanded for another good, then the
a. two goods are complementary
b. cross elasticity between the two goods is positive
c. two goods are substitutes
d. price elasticity of demand for the good whose quantity demanded increased must be inelastic
e. price elasticity of demand for the good whose quantity demanded increased must be elastic
A
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Which of the following events is likely to generate a demand for U.S. dollars in the foreign exchange market?
A) A Saudi Arabian citizen buys a condominium in New York. B) An American student will begin her first year of college at Oxford, England. C) Wal-Mart imports 5,000 bicycles from China to sell in its stores. D) The Illinois Chamber of Commerce will finance and lead a trade mission to India.
Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without having to carry her radio, get sand in her speakers, or buy new batteries). She's delighted. This is an example of
a. private property abuse b. an externality cost to the person who has the radio c. a negative externality enjoyed by Cindy d. a positive externality enjoyed by Cindy e. a public good