In September 2006, the Food and Drug Administration recommended that Americans avoid eating bagged raw spinach in the wake of an outbreak of E. coli bacteria
Following this recommendation, the food industry looked at alternatives and many turned to arugula. One Chicago distributor claimed, "The sale of the stuff has gone through the roof." Based on this information
A) the cross-price elasticity between arugula and spinach is negative.
B) the cross-price elasticity between arugula and spinach is positive.
C) the price elasticity of arugula is positive while the price elasticity of spinach falls to zero.
D) arugula is a normal good while raw spinach is an inferior good.
B
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Gross domestic product will always increase when
a. prices rise and output falls b. prices fall and output rises c. prices fall and output falls d. prices rise and output rises e. only when prices rise, regardless of output changes
Public education is priced below market price largely as a result of
A) government subsidy programs. B) under-funded public education. C) rising test scores by students. D) taxpayers who contribute little to the funding of public education.