If the cross elasticity of demand between good A and good B is negative, then a decrease in the price of good A results in
A) an increase in the demand for good B.
B) a decrease in the demand for good B.
C) a movement downward along the demand curve for good B.
D) an increase in the supply of good B.
E) a decrease in the supply of good B.
A
Economics
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When we say supply curves become more elastic over time, we mean
A) the quantity supplied becomes independent of demand. B) any price change has a larger affect on quantity supplied. C) the supply curve becomes steeper. D) the supply curve shifts upward.
Economics
Refer to Figure 9.5. If the government establishes a price floor of $2.50 and farmers grow only the amount of berries that will be sold, total consumer and producer surplus will be
A) $1.50. B) $300. C) $450. D) $500. E) $600.
Economics