If the demand for cigarettes is highly inelastic, this indicates that:
a. higher cigarette prices will increase the demand for cigarettes.
b. the price elasticity coefficient of cigarettes exceeds 1.
c. the price elasticity coefficient of cigarettes equals 1.
d. the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes.
d
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A 10 percent increase in buyers' incomes results in a 5 percent drop in the quantity of hot dogs demanded. In this range, the income elasticity of demand for hot dogs is
a. 0.5 b. 2.0 c. 5.0 d. -2.0 e. -0.5
Tariffs and quotas are forms of exchange controls
Indicate whether the statement is true or false
During the 2000 to 2006 time period, housing prices increased but only to a limited degree
a. True b. False Indicate whether the statement is true or false
Using the aggregate demand and aggregate supply model, a decrease of what curve is by itself consistent with the changes in prices and output that occurred during the onset of the Great Depression?