Elasticity computations related to demand carry a minus sign to show that the demand curve is negatively sloped.
Answer the following statement true (T) or false (F)
False
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What does "there is no such thing as a free lunch" mean in economics?
A. Sometimes people may take friends out to lunch and pay for them. B. All items in the lunch menu have specific prices. C. Products only have value because people are willing to pay for them. D. Scarce resources are used up to provide "freebies" and giveaways.
In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it can still benefit by trading with the other country
Indicate whether the statement is true or false
Which of the following statements is FALSE?
A) Both monetary and interest rate targets cannot be pursued simultaneously. B) A reduction in the required reserve ratio increases the money supply and pushes down the equilibrium interest rate. C) An open market purchase reduces the money supply and pushes down the equilibrium interest rate. D) An open market sale decreases the money supply and pushes up the equilibrium interest rate.
If the price elasticity of demand is 4 and the price of migraine medicine increases by 6%, what will be the percentage change in quantity demanded?
a. 6% b. 4% c. 24% d. 67%