If the cross-elasticity of demand for bacon with respect to price of beefsteak is positive, then:
a. an increase in the price of beefsteak will shift the demand curve for bacon outward.
b. a decrease in the price of beefsteak will shift the demand curve for beefsteak outward.
c. an increase in the price of bacon will shift the demand curve for beefsteak inward.
d. a decrease in the price of bacon will shift the demand curve for beefsteak outward.
A
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In the long run, which of the following will occur if the U.S. federal government eliminates restrictions on migration of Mexican workers to the United States?
a. The United States' total K/L ratio will rise. b. Mexico's total K/L ratio will fall. c. Wages of American workers who compete with Mexican workers for jobs will rise. d. The returns to U.S. owners of capital will remain unchanged.
If a monopoly's demand curve shifts to the right, the monopoly
A) will charge a higher price. B) will charge a lower price. C) will sell more. D) decision cannot be determined.