Blossom, Inc. sells 500 bottles of perfume a month when the price is $7. A huge increase in resource costs forces Blossom to raise price to $9, and the firm only manages to sell 460 bottles of perfume. The price elasticity of demand is:
A. 0.33 and elastic
B. 3.0 and elastic
C. 0.33 and inelastic
D. 3.0 and inelastic
C. 0.33 and inelastic
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In the above figure, B is the current long-run aggregate supply curve and E is the current short-run aggregate supply curve. Technological advances mean the long-run aggregate supply curve and short-run aggregate supply curve
A) remain B and E. B) shift to A and D, respectively. C) shift to C and F, respectively. D) shift to C and remain E, respectively.
If the required reserve ratio is 20 percent and a customer deposited $5,000 in the bank, how much is available to the bank for lending?
(A) $3,500 (B) $5,000 (C) $4,000 (D) $1,000
Which of the following can cause inflation?
A. increases in long-run aggregate supply B. decreases in short-run aggregate supply C. increases in short-run aggregate supply D. decreases in aggregate demand
Since the 1930s, third-party payments for health care have
A) risen from about 5 to 90 percent of total payments. B) declined from about 95 to 10 percent of total payments. C) declined from about 70 to 30 percent of total payments. D) risen from about 30 to 50 percent of total payments.