Suppose that the percentage change in demand is 20%, the price elasticity of supply is 2, and the percentage change in the equilibrium price is 4%. What is the price elasticity of demand?
A. 0
B. 1
C. 2
D. 3
Answer: D
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A change in the interest rate will generally affect the
A) level of investment. B) level of consumption. C) the amount of money people want to hold. D) All of these.
If we observe a decrease in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by a(an):
a. increase in the supply of the good. b. increase in the demand for the good. c. decrease in the demand for the good. d. decrease in the supply of the good.
Willingness to pay
a. measures the value that a buyer places on a good. b. is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. c. is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept. d. is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
Which of the following is a final good or service?
A. Wood pulp purchased by a paper company B. A box of brownies purchased by your instructor C. A computer chip purchased by Banana Computers D. Potatoes purchased by a potato chip company