Refer to the information provided in Figure 5.3 below to answer the question(s) that follow.
Figure 5.3Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger increases from $7 to $9, the price elasticity of demand equals ________ and the increase results in a(n) ________ in total revenue.
A. -8; decrease
B. -0.375; increase
C. -0.5; decrease
D. -2.67; decrease
Answer: D
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According to Keynes
A) consumption is directly related to income but saving has no relationship with income. B) consumption is directly related to income but saving is inversely related to income. C) both consumption and saving are positively related to real disposable income. D) consumption is positively related to the interest rate.
If investment decreases by $20 billion and the MPC = 0.8, the resulting decrease in the consumption component of AD is: a. $16 billion
b. $4 billion. c. $100 billion. d. $80 billion.
Barter transactions involve a double coincidence of wants
a. True b. False Indicate whether the statement is true or false
The overall trend in resource prices has been
a. upward. b. downward. c. constant. d. increasing exponentially.