1. If the cross-price elasticity between goods X and Y is 2.0, the goods are __ and an increase in the price of good Y will cause a(n) __ in the demand of good X.

a. substitutes; increase

b. substitutes; decrease

c. complements; increase

d. complements; decrease

2. Assuming the inverse demand function for good Z is P=90-3Q and MR=90-6Q, when Q is equal to 15, average revenue and marginal revenue are equal to __ and __ respectively

a. $60; $0

b. $85; $0

c. $45; $0

d. $75; $0

d. not change

3. If there is a shortage in the market the adjustment in price to reestablish equilibrium will drive the quantity supplied to _ and the quantity demanded to _

a. decrease; decrease

b. decrease; increase

c. increase; decrease

d. increase; increase