When the price elasticity of demand is calculated, if price increases, quantity demanded decreases and if price decreases, quantity demanded increases so the result will be
a. positive when price increases and negative when it decreases
b. negative when price increases and positive when it decreases
c. greater than one when price increases and less than one when it decreases
d. less than one when price increases and greater than one when it decreases
e. negative whether we look at a price increase or decrease
E
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Real GDP refers to GDP adjusted:
A) for changes in ruling political party. B) for changes in tax rates. C) for changes in net imports. D) for changes in prices.
Based on the figure above, what is the price of a can?
A) $0 B) $8.00 per can C) $5.10 per can D) None of the above prices is correct. E) More information is needed to determine the price of a can.
Which of the following is more likely to be the price elasticity of demand for the snake bite treatment antivenom?
A. Highly inelastic B. Unit elastic C. Elastic D. Perfectly elastic
Explain how changes in relative income affect the value of a nation’s currency.
What will be an ideal response?