If a 10% decrease in price for a good results in a 20% increase in quantity demanded, the price elasticity of demand is
a. 0.50.
b. 1.
c. 1.5.
d. 2.
d
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Use the following information to answer the next question.C = A + .875(Y - T)A = $10,000I = $2,000G = $2,500T = $1,000NX = $1,025What is the equilibrium level of real GDP?
A. $117,200 B. $116,200 C. $132,200 D. $16,525
Which of the following increases as a result of an increase in real GDP?
i. autonomous expenditure ii. induced expenditure iii. potential GDP A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
If cross elasticity between two goods is zero, then the goods are
a. perfect substitutes b. perfect complements c. good but not perfect substitutes d. not considered to be substitutes e. good but not perfect complements
In an oligopolistic market there is likely to be:
A. neither allocative nor productive efficiency. B. homogeneous but not differentiated products. C. little consideration of the actions of rival firms. D. price-taking behavior on the part of firms.