Refer to the above table. What is the absolute price elasticity of demand when a price rises from $9 to $9.50?
A. 2.85
B. 0.55
C. 2.57
D. 0.35
Answer: A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Which of the following would tend to increase the value of a future stream of income?
a. an increase in the rate of inflation b. an increase in the interest rate c. a reduction in the interest rate d. a reduction in the size of the expected future income
A leftward shift of the entire demand curve could be caused by
A. a decrease in the number of buyers. B. a change in taste away from the good. C. an increase in income if the good is inferior. D. All of the choices are correct.
In the diagram, a shift from AS 3 to AS 2 might be caused by an increase in:
A. business taxes and government regulation.
B. the prices of imported resources.
C. the prices of domestic resources.
D. productivity.