Cross-price elasticity of demand is defined as the:
A. percentage change in demand divided by percentage change in the price of another good.
B. change in the price of another good divided by the change in quantity demanded.
C. percentage change in quantity demanded divided by percentage change in the price of the same good.
D. percentage change in the price of another good divided by the percentage change in quantity demanded.
Answer: A
You might also like to view...
Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he hires a fourth driver, he can schedule breaks and lunch hours so that all three vans are in constant use, allowing him to increase deliveries per day from 60 to 75. It will cost an additional $75 per day to hire the fourth driver. The marginal cost per delivery of increasing output beyond 60 deliveries per day:
A. is $75. B. cannot be calculated without knowing Owen's total fixed costs. C. is $0 since Owen does not have to purchase another van. D. is $5.
If the stock of money is $20 billion, velocity is 4, and real output is $40 billion, what is the price level?
A. 0.5 B. 2 C. 8 D. 320