Use the Information Below to Answer the Following Questions

question 91

Multiple Choice

Use the information below to answer the following questions.
Fact 14.1.1
For automobiles the HHI is 2,350, for sporting goods it is 161, for batteries it is 2,883, and for jewellery it is 81.
-Refer to Fact 14.1.1. The market for batteries is ________ and the market for jewellery is ________.

• A)monopolistic competition; an oligopoly
• B)a monopoly; monopolistic competition
• C)a monopoly; perfectly competitive
• D)an oligopoly; monopolistic competition
• E)an oligopoly; an oligopoly

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Definitions:

Midpoint Method

A technique used in economics for calculating elasticity by averaging the starting and ending prices and quantities.

Cross-Price Elasticity

Measure of how the quantity demanded of one good responds to a change in the price of another good.

Positive

Affirmative, constructive, or based on factual data; often used in reference to positive statements in economics which describe the world as it is, rather than how it should be.

Good Y

A general term used to represent a specific product or commodity in economic models or discussions.