Author Question: Other things equal, a country's long-run aggregate supply will shift to the right when the ... (Read 118 times)

mcmcdaniel · **on:** Jun 30, 2018

Other things equal, a country's long-run aggregate supply will shift to the right when the productivity of labor rises.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Calculate the cross-price elasticity of demand between computers and printers, where a 10 percent decrease in the price of computers results in a 15 percent increase in the demand for printers.

lucas dlamini · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

True

Answer to Question 2

In this case, the cross-price elasticity of demand is -1.5.

Cross-price elasticity of demand = ( in the demand for good A) / ( in the price of B) = +15 -10 = -1.5