Author Question: In 2012, Country X and Country Y had the same production possibilities, illustrated in the figure ... (Read 175 times)

futuristic · **on:** Jun 29, 2018

In 2012, Country X and Country Y had the same production possibilities, illustrated in the figure above. Country X chose to produce at point A, while country Y chose to produce at point B.

In 2018, most likely, Country X will be at point such as ________ while Country Y will be at point such as ________. A) A; B
B) B; A
C) N; Q
D) Q; N

Question 2

If there is an increase in the price of broccoli because of disastrous weather that destroys about half of this year's spinach crop, which of the following could be TRUE?

A) The cross elasticity of demand between spinach and broccoli is negative 1.25.
B) The demand curve for broccoli has shifted rightward and the cross elasticity of demand between spinach and broccoli is positive.
C) The demand curve for spinach has shifted to the leftward and the cross elasticity of demand between spinach and broccoli is positive.
D) The demand curves for spinach and broccoli have become more cross inelastic.