According to the text, the price elasticity of demand for oranges has been estimated to be -0.62. This implies that a doubling of the price of oranges would cause the quantity demanded of oranges to:
A) increase by 6.2 percent.
B) decrease by 6.2 percent.
C) increase by 62 percent.
D) decrease by 62 percent.
D
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If actual inflation differs from expected inflation, what is the slope of the aggregate supply curve?
A. The slope is horizontal in the short and long run. B. The slope is vertical in the short and long run. C. The slope is vertical in the short run and upward sloping in the long run. D. The slope is upward sloping in the short run and vertical in the long run.
If the government attempts to force a natural monopoly to charge a price equal to marginal cost,
A) the natural monopoly will shut down. B) the natural monopoly will still make high profits. C) the natural monopoly's marginal cost curve will shift up. D) total welfare is maximized.
What is the "beggar-thy-neighbor" policy, and why is it a problem for the country that caused it?
What will be an ideal response?
Lower U.S. interest rates cause the value of the dollar to:
A. rise, making U.S. goods relatively cheaper on world markets. B. rise, making U.S. goods relatively more expensive on world markets. C. fall, making U.S. goods relatively cheaper on world markets. D. fall, making U.S. goods relatively more expensive on world markets.