The cross price elasticity of demand is measured by the
A. percentage change in the price of one good divided by the percentage change in the demand for another good.
B. percentage change in the quantity demanded of one good divided by the percentage change in quantity demanded of another good.
C. percentage change in the demand for one good divided by the percentage change in price of another good.
D. percentage change in the price of one good divided by the percentage change in price of another good.
Answer: C
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Which of the following statements is true of the long run?
A) Identical firms can enjoy positive economic profits. B) Identical firms face an upward-sloping supply curve. C) Non-identical firms can enjoy positive economic profits. D) Non-identical firms face a horizontal supply curve.
An individual having an unusually bad year will be on her short-run consumption function at a point ________ her long-run consumption function, with an unusually ________ saving ratio
A) above, high B) above, low C) below, high D) below, low