Hot dogs and hot dog buns are found to be related by the cross elasticity of demand. If they are complementary goods, the cross elasticity will be

Which of the following is true of adverse selection? a. It can result when one of the parties to a transaction has little information about the quality of the goods involved. b. It can cause the quality of goods traded to fall, if quality detection costs are high

c. It can be a difficult problem to overcome, because it is not individually rational for the transactor with the superior information to provide a truthful and complete disclosure. d. All of the above are true.

The primary difference between a market-day supply curve and a short-run supply curve is the

a. amount of time that suppliers have to respond to a price change b. number of suppliers that can enter the market c. time available to people to align their demands to supply d. type of good being produced e. lower price that increases quantity supplied