The "Economics in Action" in the text mentions that the elasticity of demand for agricultural products is 0.42. If a drought boosts the price of corn 25 percent, then we can calculate the quantity of corn demanded ________
A) increased by 10.5 percent
B) decreased by 10.5 percent
C) increased by 8.4 percent
D) decreased by 8.4 percent
B
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The United States is the largest national economy in the world.
Answer the following statement true (T) or false (F)
At an equilibrium price, quantity demanded
A. exceeds quantity supplied. B. equals quantity supplied. C. is less than quantity supplied. D. Any of the above is possible.
The difference between cooperative and non-cooperative games is
a. cooperative games allow side payments to support collusion b. non-cooperative games encourage communication of sensitive information between arms-length competitors c. cooperative games involve randomized behavior d. cooperative games necessitate an explicit order of play e. inconsequential except when players have contractual relationships
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.