When Peter earned $65,000 he purchased 10 novels a year. His income has just increased to $68,000 and he plans to purchase 15 novels this year. Peter's income elasticity of demand for novels equals
A. 8.87.
B. 0.11.
C. 1.67.
D. 0.
Answer: A
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In the above figure, technological progress that increases the expected profit will
A) shift the demand for loanable funds curve leftward. B) shift the demand for loanable funds curve rightward. C) have no effect on the demand for loanable funds curve. D) make the demand for loanable funds curve become horizontal.
"Our knowledge of the factors which govern the yield of an investment some years hence is usually very slight and often negligible." This quote by ________ helps to explain ________
A) Jorgenson; cycles of overbuilding B) Keynes; cycles of overbuilding C) Jorgenson; the accelerator hypothesis D) Keynes; the accelerator hypothesis
When we compare poor and rich countries in the world
A) There is much greater dispersion in growth rates in per capita income for the poor countries than for the rich countries. B) The investment rate is higher for poor countries than for rich countries. C) There is much greater dispersion in growth rates in per capita income for the rich countries than for the poor countries. D) Population growth rates are higher in rich countries than in poor countries.
A decrease in demand and a decrease in supply will lead to
A) unambiguous increases in both price and quantity. B) unambiguous decreases in both price quantity. C) an unambiguous decrease in price, but the effect on quantity is indeterminate. D) an unambiguous decrease in quantity, but the effect on price is indeterminate.