If the price of a good increases by 5% and the quantity demanded decreases by 5%, then at that price, the good is
A. perfectly inelastic.
B. unit elastic.
C. elastic.
D. inelastic.
Answer: B
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Per-capita income of a country is determined by ________
A) multiplying its gross domestic product by the total number of goods produced during that year. B) dividing its gross domestic product by the total population of the country during that year. C) multiplying its gross domestic product by the total population of the country during that year. D) dividing its gross domestic product by the total number of goods produced during that year.
Capacity utilization increases. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
Pollution is a form of market failure called a negative externality
a. True b. False
In macroeconomics, the vertical axis in a supply-demand model measures the price level rather than a particular product’s price.
Answer the following statement true (T) or false (F)