Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean?
A) A 1 percent decrease in the price of grapefruit juice leads to a 6 percent increase in orange juice consumption.
B) A 6 percent increase in the price of grapefruit juice leads to a 1 percent increase in orange juice consumption.
C) The demand for orange juice is 6 times greater than the demand for grapefruit juice.
D) If the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased.
A
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The table above shows the short-run product schedule for Virginia's Tee-Shirts. What is the average product associated with hiring the fourth worker?
A) 40 shirts B) 55 shirts C) 50 shirts D) 220 shirts