A reverse tax, or negative income tax, is a way of creating a minimum income for all households while retaining an incentive for people to work

Suppose that a retailer sells 500 six-packs of Dr. Pepper per day at $3.50/six-pack. Also, suppose that the cross-price elasticity between Dr. Pepper and Pepsi is 0.6. If the retailer lowers the price of Pepsi from $4.00 to $3.60/six-pack, what is the

percentage change in the price of Pepsi? A) 10% increase B) 10% decrease C) 6% decrease D) 6% increase

In the short run with predetermined prices, when output is less than planned aggregate expenditure, firms will:

A. decrease planned aggregate expenditure. B. increase planned aggregate expenditure. C. increase production. D. reduce production.