Tara buys 4 alternative rock CDs when price is $10 and only 2 when price is $14 . Using the method of average values, her price elasticity of demand for alternative rock CDs is
a. 0.00
b. 0.50
c. 2.00
d. 5.00
e. 10.0
C
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If the required reserve ratio decreases, the
Physical currency is ________ popular than e-cash, ________
A) less; and both are portable and recognizable B) more; and both are portable and recognizable C) more; but only physical currency is portable and recognizable D) more; and both are portable, untraceable and anonymous E) less; but both are portable, untraceable and anonymous
The optimal combination of goods for a consumer to purchase is shown by
A. any intersection of the indifference curve and the budget line. B. the point where the budget line touches the vertical axis. C. a point of tangency between the budget line and the indifference curve. D. the point at which the indifference curve parallels the horizontal axis. E. the intersection of two indifference curves.
Holding other things constant, decreases in the price level in the US will
a. Cause the dollar to gain value b. Cause the dollar to lose value c. Does not affect the dollar value d. None of the above