The price of a new textbook is $120 in one year and is $150 two years later, while the price of a used copy of the text increased from $40 to $60. The relative price of a new textbook
A) increased from 3 to 4.5.
B) decreased from 0.8 to 0.67.
C) decreased from 3 to 2.5.
D) remained constant.
C
You might also like to view...
Refer to Table 2-14. Does either Ireland or Scotland have an absolute advantage and if so, in what product?
A) Scotland only has an absolute advantage in producing guitars. B) Ireland only has an absolute advantage in producing motorcycles. C) Ireland only has an absolute advantage in producing guitars. D) Scotland has an absolute advantage in producing both products.
A 10 percent increase in the price of tablets leads to a 10 percent decrease in the quantity demanded of tablets. The absolute price elasticity of demand for tablets is
A) 3. B) 0.3. C) 1. D) 10.
A payoff matrix shows:
A. the demand curve facing a firm when there are only two firms. B. the payoff to being a perfectly competitive firm. C. the payoffs for each possible combination of strategies. D. the payoff to being a monopolist.
Which are liabilities to a bank?
A. Property and capital stock. B. Capital stock and demand deposits. C. Vault cash and demand deposits. D. Capital stock and reserves.