The market demand for wheat is Q = 100 - 2p + 1pb, where pb is the price of barley. If the price of wheat is $2 and the price of barley is $4, the cross-price elasticity of demand
A) equals (4/100).
B) equals (-2/100).
C) equals (-4/25).
D) cannot be calculated without more information.
A
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A family purchases a package of sandwich buns at a supermarket. Are those buns considered a "final" good?
A) No, because they are an intermediate ingredient in the actual final good: sandwiches. B) Yes, if the family eats them and does not sell the sandwiches made from them. C) No, because the supermarket bought the finished buns, so they are "used" goods by the time the family buys them. D) Yes, for so long as it is sold on the market it is a final good.
A demand curve shows
A) the willingness of consumers to buy a product at different prices. B) the willingness of consumers to substitute one product for another product. C) the relationship between the price of a product and the demand for the product. D) the relationship between the price of a product and the total benefit consumers receive from the product.