Which of the following pairs of goods would be expected to have a positive cross-price elasticity of demand?
A) coffee and tea.
B) gasoline and large SUVs.
C) tennis racquets and tennis balls.
D) hot dogs and hot dog buns.
A
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If the Fed has announced that it plans on increasing the interest rate it will
A) engage in contractionary open market operations, thereby decreasing the money supply. B) engage in expansionary open market operations, thereby decreasing the money supply. C) engage in expansionary open market operations, thereby increasing the money supply. D) engage in contractionary open market operations, thereby increasing the money supply.
When the plans of buyers and sellers are fully coordinated
A) the market clears. B) there is neither a shortage nor surplus of a good. C) quantity demanded equals quantity supplied. D) all of the above are true.