Suppose that when the price of good X increases from $800 to $850, the quantity demanded of good Y increases from 65 to 70 . Using the midpoint method, the cross price elasticity of demand is about
a. -1.2, and X and Y are complements.
b. -0.1, and X and Y are complements.
c. 0.1, and X and Y are substitutes.
d. 1.2, and X and Y are substitutes.
d
Economics
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In the circular flow model, households
A) spend earnings from resource sales on goods and services in the product market. B) and firms spend earnings from resource sales on goods and services in the factor market. C) sell goods and services in the input market. D) hire resources sold by firms in the factor market.
Economics
If the tax is $500 on an income of $2,500, the income tax rate is
a. 20 percent b. 25 percent c. 10 percent d. 5 percent e. 50 percent
Economics