If price decreases by 10 percent and quantity demanded increases by 2 percent, the price elasticity of demand will be
A. 5.
B. 20.
C. 2.
D. 0.2.
Answer: D
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When the Fed decreases the money stock, the money supply curve shifts to the ________ and the interest rate ________, everything else held constant
A) right; rises B) right; falls C) left; falls D) left; rises
If Canada's national saving exceeds its domestic investment, then Canada has
a. positive net capital outflows and negative net exports. b. positive net capital outflows and positive net exports. c. negative net capital outflows and negative net exports. d. negative net capital outflows and positive net exports.
The substitution effect takes place as we move
A. upward from I to J.
B. down from J to I.
C. up from J to K.
D. down from K to J.
The location of the product supply curve depends on the:
A. production technology. B. number of buyers in the market. C. tastes of buyers. D. location of the demand curve.