The price of a new car is $40,000 while the price of a five-year old car of the same brand is $16,000. The next year the price of the new car increases to $44,000 and the price of a five-year old car of the same brand is $17,600. The relative price of
the used car
A) decreased by $2,400.
B) decreased by 10 percent.
C) increased by 10 percent.
D) remained constant at 0.4.
Answer: D
You might also like to view...
What happens if there is a shortage or a surplus of U.S. dollars in the foreign exchange market?
What will be an ideal response?
Which statement concerning powers granted the President of the United States by the Taft-Hartley Act is TRUE?
A) The President can obtain an injunction that will stop a strike, if the strike involves government workers only. B) The President can require management to negotiate with a union and if the firm's management refuses, the President can appoint an arbitrator to resolve the conflict. C) The President can obtain an injunction that will stop a strike for an eighty-day "cooling off" period if the strike is expected to imperil national safety or health. D) The President can obtain an injunction that will stop a strike indefinitely.
A price discriminating monopsonist could increase its profits by
a. paying the minimum wages possible. b. hiring as little capital as possible. c. paying lower wages to workers with inelastic supply of labor curves than to workers with elastic curves. d. paying lower wages to workers with elastic supply of labor curves than to workers with inelastic curves.
The Phillips curve describes a negative relationship between unemployment and inflation
a. True b. False Indicate whether the statement is true or false