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on 13-Aug-2015 (Thu)

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Flashcard 150903088

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
The [...] is termed the cross price elasticity of demand.
Answer
ratio of the percentage change in the quantity demanded of a good to the percentage change in the price of a related good (sensitivity)


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The ratio of the percentage change in the quantity demanded of a good to the percentage change in the price of a related good is termed the cross price elasticity of demand.

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Flashcard 150903130

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Imposition of an effective maximum price (price ceiling) by the government results in [...] demand
Answer
excess


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Imposition of an effective maximum price (price ceiling) by the government results in excess demand,

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Flashcard 150903150

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Imposition of an effective quota [...] supply
Answer
reduces


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Imposition of an effective quota reduces supply.

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Flashcard 150903160

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Payment of a subsidy to producers [...] supply
Answer
increases


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Payment of a subsidy to producers increases supply.

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Flashcard 150903170

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Imposition of a tax on suppliers [...] supply
Answer
reduces


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Imposition of a tax on suppliers reduces supply.

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Flashcard 150903180

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
Imposition of a tax on consumers [...] demand
Answer
reduces demand


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Imposition of a tax on consumers reduces demand.

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