When the price of sausages is $2.00 per pound, consumers buy 50 pounds of hamburger. When the price of sausages rises to $3.00 per pound, 60 pounds of hamburger are purchased
The cross price elasticity of demand between sausages and hamburger is approximately equal to A) +0.04.
B) -0.45.
C) +2.20.
D) +0.45.
D
Economics
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If a society relies on competitive markets to allocate goods, then
A) an equitable distribution is assured. B) an equitable distribution is certain to not occur. C) the competitive equilibrium will be Pareto-superior to any other. D) social welfare as measured by consumer surplus plus producer surplus will equal zero.
Economics
A given change in disposable income would have the greatest effect on consumption with which of the following marginal propensities to consume?
a. 0.4 b. 0.6 c. 0.8 d. 0.2
Economics