Complements are characterized by:
A. negative cross-price elasticity of demand.
B. positive cross-price elasticity of demand.
C. cross-price elasticity of demand equal to zero.
D. cross price elasticity of demand equal to -1.
A. negative cross-price elasticity of demand.
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Automatic stabilizers tend to exaggerate the severity of business cycles.
a. true b. false
Assume that supply increases slightly and demand increases greatly. Which of the following will happen?
a. Equilibrium price will fall and equilibrium quantity will rise. b. Equilibrium price will rise and equilibrium quantity will fall. c. Equilibrium price will rise and equilibrium quantity will rise. d. Equilibrium price will fall and equilibrium quantity will fall. e. Neither equilibrium price nor equilibrium quantity will change.