Suppose that the cross price elasticity of demand between goods A and B equals 1.5. Which of the following is TRUE?
A) A and B are complements because the cross price elasticity is greater than one.
B) A and B are complements because the cross price elasticity is positive.
C) A and B are substitutes because the cross price elasticity is greater than one.
D) A and B are substitutes because the cross price elasticity is positive.
D
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A demand curve for The Steel Porcupines' concert tickets would show the:
A. number of tickets the box office is willing to sell at various prices. B. number of people who need tickets. C. quality of people who want to buy these concert tickets. D. number of tickets that will be purchased at various prices.
An affordable consumption bundle is an interior choice if:
A. it lies below the budget line. B. for each good, there are affordable bundles containing a little bit more of that good and a little bit less of it. C. for each good, there are no other affordable bundles containing a little bit more of that good and a little bit less of it. D. it exhausts the consumer's income.