QUESTION 5 Other things remaining unchanged, advertisement would likely make dem
ID: 1196920 • Letter: Q
Question
QUESTION 5
Other things remaining unchanged, advertisement would likely make demand for a good more price elastic.
True
False
2 points
QUESTION 6
The cross price elasticity demand for a good with respect to the price of a complementary good is negative.
True
False
2 points
QUESTION 7
When the marginal product of labor is smaller than its average product, marginal cost will be smaller than average variable cost.
True
False
2 points
QUESTION 8
With capital measured along the vertical axis and labor along the horizontal axis the slope of an isoquant is equal to the ratio between the price of capital over the price of labor.
True
False
2 points
Explanation / Answer
5. True.
6. False. Since price of coffee rises its demand falls and demand for tea rises.
7. True.
8. False. It is price of labour over price of capital.