The price of soccer balls increases from $35 to $40, and as a result, the quantity demanded decreases from 250 to 200 . Over this price range,
a. demand is elastic.
b. demand is inelastic.
c. demand is of unitary elasticity.
d. there is insufficient information to determine the price elasticity of demand.
A
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Economic efficiency necessarily occurs when the firm
A) produces a given output at least cost. B) produces a given output by using the least inputs. C) earns a normal profit. D) earns an economic profit.
A nation's country-risk premium increases if:
a. Large corporations, on average, increase their debt-to-equity ratios, thereby making their operations more volatile. b. Expected inflation becomes harder to predict. c. The average maturity structure in the nation rises. d. All of the above. e. Central bank policies become more predictable.
When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the federal funds market ________.
A. increases and the federal funds rate increases B. decreases and the federal funds rate decreases C. increases and the federal funds rate decreases D. decreases and the federal funds rate increases
The expenditure multiplier is equal to the change in ________ divided by the change in ________
A) dependent expenditure; autonomous expenditure B) autonomous expenditure; equilibrium expenditure C) the price level; real GDP D) equilibrium expenditure; autonomous expenditure E) real GDP; equilibrium expenditure