# The cross price elasticity of demand for substitutes

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Question 37   Suppose a bank has \$ 10,000 in deposits and \$ 1,000 in reserves . The required reserve ratio is 5 % . Which of the following occurs if the required reserve ratio is increased to 10% ? Select one :
a. The bank 's required reserves will decrease to \$ 500 .
b. The bank 's excess reserves will increase to \$ 1,000 .
c. The bank 's required reserves will increase to \$ 1,000 .
d. The bank 's ability to create loans increases by 5 % .
Answer:  c.   The bank 's required reserves will increase to \$ 1,000 .
Question 38   A feature of monopoly that leads to unfavorable consequences is that it : Select one :
Question 39   The slope of the total product curve is : Select one :
Question 43   Suppose a country has a national debt of \$ 5,000 billion , a GDP of \$ 20,000 billion , and a budget surplus of \$ 130 billion . How much will it s new national debt be ? Select one :
Question 44   In this exhibit ( Monopoly Through Collusion ) , given the duopoly industry illustrated in the exhibit , if the two firms colluded to maximize their combined economic profits , the market price they would set would be _______ and combined economic profits of the firms would be _______ . Select one :
a . P 1 ; given by the area of the rectangle bounded by 0P 1 CQ 4
b. P1 ; zero
c. P 3 ; given by the area of the rectangle bounded by 0P 3 AQ 1
d . P 2 ; given by the area of the rectangle bounded by P 1 P 2 BG
Answer:  d .   P 2 ; given by the area of the rectangle bounded by P 1 P 2 BG
Question 45   In this exhibit ( The Supply of Videotape Rentals ) , a decrease in the number of rental stores supplying videotape rentals would result in a change illustrated by : Select one :
Question 46   Which of the following statements is true ?
Question 47   If an industry 's long - run supply curve is upward sloping , the industry is characterized by : Select one :
Question 48   Marginal cost is the change in : Select one :
a. total cost resulting from a 1 - unit change in a variable input .
b. total cost resulting from a 1 - unit change in quantity .
c. total cost resulting from a 1 - unit change in average cost .
d. average cost resulting from a 1 - unit change in quantity .
Answer:  b.   total cost resulting from a 1 - unit change in quantity .
Question 49   The cost of the Great Depression between 1929 and 1942 was a loss of : Select one :
Question 40
The cross price elasticity of demand for substitutes goods is:
Freema withdraws \$1,000 from her checking account to purchase a \$1,000 time-deposit. As a result of her transaction:
Question 42In this exhibit (Consumer Equilibrium 3), assume that you are consuming the combination of goods at point K. Given budget constraint FL, utility can be increased by moving to point:
Question 43Suppose a country has a national debt of \$5,000 billion, a GDP of \$20,000 billion, and abudget surplus of \$130 billion. How much will its new national debt be?Select one:a. \$5,130 billion
b. \$4, 870 billion c. \$15,130 billiond. \$19, 870 billion
Question 44In this exhibit (Monopoly Through Collusion), given the duopoly industry illustrated in theexhibit, if the two firms colluded to maximize their combined economic profits, the market price they would set would be _______ and combined economic profits of the firms would be _______ .
Question 45In this exhibit (The Supply of Videotape Rentals), a decrease in the number of rental stores supplying videotape rentals would result in a change illustrated by:
Question 46Which of the following statements is true?
growth rates because increases in population lead to increases in the size of the labor force.Select one:a. I and IIIb. II and IIIc. I only d. II onlye. III only
Question 47If an industry's long-run supply curve is upward sloping, the industry is characterized by:
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