Which of the following are theories meant to explain "Why Price Levels are Lower in Poorer Countries"?
A) only Bhagwati-Kravis-Lipsey
B) only Balassa-Samuelson
C) only Goldberg-Knetter
D) Bhagwati-Kravis-Lipsey and Balassa-Samuelson
E) Bhagwati-Kravis-Lipsey and Goldberg-Knetter
D
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Which of the following actions has the best potential for experiencing economies of scope?
A) producing a product that has appeal to a wider segment of the market B) producing computers and software C) producing spaghetti and soft drinks D) producing cars and trucks
The price elasticity of demand for a product is a measure of the:
a. extent of competition in the market for the product. b. change in the quantity purchased of the product relative to a change in a consumer's income. c. change in the quantity demanded of the product due to changes in factors other than price. d. degree of consumer responsiveness to changes in the price of the product. e. percentage change in the prices of two related products.