Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 12, Problem 5MC
To determine

Acquiring complementary good.

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computers and software are complements, then A) other things being equal, a fall in the price of computers will increase the demand for software and, the price of software will fall. B) other things being equal, a rise in the price of computers will decrease the demand for software and, the price of software will fall. C) other things being equal, a fall in the price of computers will decrease the demand for software and, the price of software will fall. D) other things being equal, a rise in the price of software will increase the demand for computers and, the price of computers will rise. E) other things being equal, a fall in the price of software will decrease the demand for computers and, the price of computers will fall.
For a particular good, 10% increase in price causes a 5% decrease in quantity demanded. Which of the following statements is most likely applicable to this good? a. The good is a luxury b. The market for the good is broadly defined c. there are many close substitutes for this good d. The relevant time horizon is long
If the cross-price elasticity of demand for goods X and Y is zero, it would imply that   a. price elasticity of demand for X is zero.   b. price elasticity of demand for Y is zero.   c. X and Y are unrelated.   d. X and Y are substitutes.   e. X and Y are complements.
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