Suppose that the cross price elasticity of demand between good X and good Y is -1.55. This indicates that the two goods are
A) substitutes.
B) complements.
C) both inferior.
D) completely unrelated in the minds of consumers.
B
Economics
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As long as price exceeds AVC, the firm is better off
A) continuing production. B) closing. C) raising its price. D) cutting price.
Economics
When workers save less during their working lives due to the fact that they have been paying Social Security taxes, this is known as
A. the Social Security effect. B. the wealth substitution effect. C. the bequest effect. D. the life cycle hypothesis.
Economics