If the cross-price elasticity of demand between good x and good y is 0.4, then
a. the demand for good x is highly responsive to changes in the price of good y
b. a 10 percent increase in the price of good y leads to a 0.4 percent increase in the quantity demanded of good x
c. a 10 percent decrease in the price of good y leads to a 4 percent decrease in the demand for good y
d. good x and good y are complements
e. good x is a normal good and good y is an inferior good
C
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What distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm in the short run?
a. The size of the factory is fixed. b. There are no fixed costs. c. Output is not variable. d. The number of workers used to produce the firm's product is fixed.
Which of the following statements is true?
A) The relationship between labor demand and wage rate and the relationship between labor supply and wage rate are both positive. B) The relationship between labor demand and wage rate and the relationship between labor supply and wage rate are both negative. C) The relationship between labor demand and wage rate is positive, whereas the relationship between labor supply and wage rate is negative. D) The relationship between labor demand and wage rate is negative, whereas the relationship between labor supply and wage rate is positive.