Robert must always have sugar in his coffee. For Robert, the cross price elasticity of demand for coffee and sugar is
A. equal to 0.
B. negative.
C. positive.
D. impossible to determine without more information.
Answer: B
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Measured as a share of national income, government expenditures on income transfers during the last 70 years have
a. grown rapidly. b. declined substantially. c. been virtually unchanged. d. increased throughout much of that period, but they have declined substantially since 1980.
Refer to the tables. If South Cantina is producing at production alternative D, the opportunity cost of the third unit of capital goods will be:
Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina:
A. 3 units of consumer goods.
B. 4 units of consumer goods.
C. 5 units of consumer goods.
D. 6 units of consumer goods.