The demand for a product is inelastic whenever
A. the percentage change in quantity demanded is less than the percentage change in price.
B. the percentage change in quantity demanded is higher than the percentage changes in price.
C. the percentage change in quantity demanded is equal to the percentage changes in price.
D. the quantity demanded changes by zero when price changes.
Answer: A
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According to the graph shown, if this economy were an autarky, consumers would get area:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. A in consumer surplus.
B. ABC in consumer surplus.
C. ABCD in consumer surplus.
D. ABCDEFG in consumer surplus.
The Fed relies on three instruments to control the money supply. They are
a. taxes, reserve requirements, and the discount rate b. government spending, the discount rate, and open market operations c. reserve requirements, the discount rate, and currency liability d. reserve requirements, the discount rate, and open market operations e. reserve requirements, taxes, and open market operations
Refer to the graph shown. If the firm maximizes profit, the marginal cost of its product will be:
A. $6. B. $10. C. $8. D. $4.
Global imbalances may be reduced by a reduction in excess savings.
Answer the following statement(s) true (T) or false (F)