If the cross-price elasticity of demand between two goods is 0,
a. a price change for one good will be exactly offset by a price change for the other
b. neither demand curve would shift following a change in the price of one of the goods
c. there is no income effect between the two goods
d. the demand for each good is price inelastic
e. the demand for each good is price elastic
B
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In general, the purpose of markets is to facilitate the exchange of goods and services between buyers and sellers
a. True b. False Indicate whether the statement is true or false
In a competitive price-taker market,
a. many other sellers are offering a product that is essentially identical. b. consumers have more influence over the market price than producers do. c. government intervention prevents firms from influencing price. d. producers agree not to change the price.