Gallons of milk at a local grocery store are priced at one for $4.00, or two for $6.00 . The marginal cost of buying a second gallon of milk:

How does the goods market return to equilibrium if AE is less than production?

What will be an ideal response?

The cross price elasticities among substitute goods will be extremely high when:

a. b and d. b. they are very similar to each other. c. people are consuming them frequently. d. people consume them in equal quantities. e. they are imperfect substitutes.