When quantity demanded is very sensitive to changes in price, we can say that:
(a) Demand is inelastic.
(b) Demand is elastic.
(c) Supply is inelastic.
(d) Demand is perfectly inelastic.
Answer: (b) Demand is elastic.
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Banks are firms who are in business, like butchers, bakers, and candlestick makers, to make profit. They accept deposits from savers and use those deposits to make loans to borrowers. The profit they make is
a. their excess reserves, remaining in the bank after loans are made b. regulated by the FDIC c. regulated by the Federal Reserve System d. the difference between the interest rate they pay to their borrowers and the interest rate they charge to their depositors e. the difference between the interest rate they pay to their depositors and the interest rate they charge to their borrowers
How can autonomous consumption be greater than zero when income is zero?
What will be an ideal response?
Command-and-control policies usually:
A. result in higher costs for firms when compared to pollution taxes. B. don't raise prices as much to consumers as do pollution taxes. C. result in less pollution being produced than when pollution taxes are used. D. result in lower costs for firms when compared to pollution taxes.
A country's foreign exchange reserves refers to
A) the currency of the nation itself. B) the country's holdings of gold and internationally accepted currencies. C) the total amount of a country's currency held by other nations. D) the country's Special Drawing Rights (SDRs) at the IMF.