Refer to Figure 11-16. The figure above illustrates a series of isoquants. Which of the following statements is true?
A) Points z and y represent the same output; this output is produced with more capital at z than at y.
B) Point z represents a greater output than point x or point y.
C) Points x, z, and y all represent the same output.
D) Point x and y represent the same output but the cost of production at y is greater than the cost of production at x.
B
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When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent, and the sale of dips (like salsa and bean dip) fell 8 percent
This set of facts indicates that the cross-price elasticity between tortilla chips and dips is ________, so the two are ________. A) 0.4; substitutes B) -0.4; complements C) -0.8; complements D) 0.8; substitutes
An increase in aggregate demand in the Classical model causes the price level to
A) rise but output remains constant. B) fall but output remains constant. C) rise but output to fall. D) fall but output to rise.