Your neighbor has knowledge of economics and you would like her to share it with you. You own a car, a CD player and a new pair of running shoes. You wish to make a trade, but the neighbor does not want what you have. The problem can be stated as follows: You are not satisfying the
A) rule of transaction costs.
B) double coincidence of wants.
C) law of marketability.
D) terms of a common denominator.
B
You might also like to view...
When the Fed raises the federal funds rate, eventually there is
A) an upward movement along the investment demand curve and the aggregate demand curve shifts leftward. B) an upward movement along the investment demand curve and the aggregate demand curve shifts rightward. C) a leftward shift of the investment demand curve and the aggregate demand curve shifts leftward. D) an upward movement along the investment demand curve and along the aggregate demand curve. E) a leftward shift of both the aggregate demand curve and the aggregate supply curve.
When the price of bread increases by 3 percent, the quantity demanded of crackers increases by 2 percent. The cross elasticity of demand between crackers and bread is:
a. 0.67. b. 1.5. c. 2.5. d. 3.2. e. 5.0.