Suppose the price of movies seen at a theater rises from $12 per couple to $20 per couple. The theater manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons
What is the arc price elasticity of demand for movies? A) 0.5
B) 0.8
C) 1.0
D) 1.2
B
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The annual inflation rate measures the percentage growth rate of
A. the CPI from one year to the next. B. the CPI from the base period 1982-84 to a given year. C. real GDP from the base period 1982-84 to a given year. D. real GDP from one year to the next.
Which measure uses a common set of international prices for all goods and services produced?
a. purchasing power parity income levels b. GNI price deflators c. foreign exchange rate conversions to U.S. dollars d. the exchange rate
Explain the complete formula for the M1 money supply, and explain how changes in required reserves, excess reserves, the currency ratio, the nonborrowed base, and borrowed reserves affect the money supply
What will be an ideal response?
Over time, foreign investment is credited with the greatest contribution to economic growth in the United States.
Answer the following statement true (T) or false (F)