If the price of gasoline increased by 5% and consumers responded by purchasing 5% less gasoline, the absolute value of price elasticity of demand for gasoline would equal
A) 0.1.
B) 0.5.
C) 5.
D) 1.
Answer: D
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An instrument developed to help investors and institutions hedge interest-rate risk is
A) a debit card. B) a credit card. C) a financial derivative. D) a junk bond.
In a price-fixing agreement amongst two oligopolists, each seller's best strategy would be to maintain the agreement, as it would leave both of them better off
Indicate whether the statement is true or false
According to purchasing-power parity, if prices in the United States increase by a larger percentage than prices in the United Kingdom, then the
a. real exchange rate rises. b. nominal exchange rate rises. c. real exchange rate falls. d. nominal exchange rate falls.
Cruz earned $500 a week in 2003, the base year; by 2009 she was earning $700. If the consumer price index was 150 in 2009, how much were Ms. Cruz's real wages that year, and by what percentage had they changed?
What will be an ideal response?