Firm A producing one good acquires another firm B producing another good. The cross price elasticity of demand for the goods owned by each firm is -1.4 . Holding other things constant, the acquiring firm should
a. Raise prices on both goods
b. Lower prices on both goods
c. Raise price on the acquired good only
d. Need more information
b
Economics
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Refer to Figure 3-4. If the current market price is $10, the market will achieve equilibrium by
A) a price decrease, decreasing the supply and increasing the demand. B) a price increase, increasing the quantity supplied and decreasing the quantity demanded. C) a price decrease, decreasing the quantity supplied and increasing the quantity demanded. D) a price increase, increasing the supply and decreasing the demand.
Economics
A demand curve is derived from
A) the production possibilities curve. B) consumer's income. C) a demand schedule. D) an equilibrium.
Economics