The price elasticity of demand for a textbook is estimated to be 1 no matter what the price or quantity demanded. In this case:
A. A 10 percent increase in price will result in a 10 percent increase in total revenues
B. A 10 percent increase in price will result in a 10 percent decrease in the quantity demanded
C. A 10 percent increase in price will result in a 10 percent decrease in total revenues
D. A 10 percent increase in price will result in a 10 percent increase in quantity demanded
B. A 10 percent increase in price will result in a 10 percent decrease in the quantity demanded
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Why do economists measure responsiveness of demand to price in percentage changes rather than in absolute changes?
What will be an ideal response?
An increase in the interest rate will: a. increase the amount of money supplied by lenders
b. decrease the amount of money supplied by lenders. c. have no effect on the amount of money supplied by lenders. d. have an ambiguous effect on the amount of money supplied by lenders.
The 12 regional Fed banks do all of the following except:
A. Clear checks between private banks. B. Lend money to individuals. C. Provide currency to banks. D. Hold bank reserves.
A World View article, "The Female 'Inequality Trap,'" says that in many poor nations the "… returns on female human capital investment is low." When women are not allowed to work outside the home or to receive an education, this is referred to as
A. An inequality trap. B. A justice gap. C. A productivity trap. D. A prejudice gap.