The less sensitive quantity demanded is to a change in price, the
A) smaller a change in price must be to induce a certain change in quantity demanded.
B) greater the absolute price elasticity of demand.
C) smaller the absolute price elasticity of demand.
D) closer the absolute price elasticity of demand is to one.
C
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How would a decrease in price of Blu-Ray movies affect the demand for Blu-Ray players?
A. Decrease the demand B. Increase the demand C. Increase in supply D. Increase in quantity demanded
The quantity theory of money predicts how changes in
A) the price level affect nominal GDP. B) the price level affect real GDP. C) the quantity of money affect the price level. D) real GDP affect the nominal GDP.
The experience of Ireland in the last four decades indicates that in order to achieve high rates of economic growth countries must
a. hold free (democratic) elections b. maintain a government expenditure/GDP ratio of at least 40 percent. c. restrain the growth of government, keep taxes low, remove trade barriers, and follow a monetary policy consistent with price stability. d. obtain financial aid from foreign governments in order to get the growth process started.
When studying individuals' economic behavior, economists assume that
A) individuals understand the rationale for all their actions. B) individuals act as if they were rational. C) only educated people act as if they were rational. D) self-interest is of limited relevance in predicting an individual's actions.