The formula for calculating the cross price elasticity of demand is:
a. the change in the quantity demanded of one good divided by the change in the price of another good
b. the percentage change in demand of one good divided by the percentage change in the price of another good.
c. the percentage change in the quantity supplied of one good divided by the percentage change in the price of another good.
d. the percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.
b
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All the goods and services we produce are ____________ .
a. expensive. b. scarce. c. recyclable. d. efficiently produced.
Tom is a castaway who washes up on a remote island. He can kill eight birds per hour or catch ten fish per day. The natives on the island can kill ten birds per day or catch twenty fish per day. Tom has a comparative advantage in: a. hunting birds
b. fishing. c. both hunting birds and fishing d. neither hunting birds or fishing.