If the demand for product X is inelastic, a 4% increase in the price of X will ________ the quantity demanded of X by ________ than 4%.
A. decrease; less
B. increase; less
C. decrease; more
D. increase; more
Answer: A
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If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then the value of price elasticity of demand is
a. -1/3 b. -2 1/3 c. -1/4 d. -3 e. -2/3
Which of the following does NOT occur when the price of a good increases?
A. The good becomes more expensive relative to all other goods. C. Consumers shift their purchases away from the more expensive good. D. The consumer is effectively poorer than before the increase in price.
Risk
a. can be reduced by placing a large number of small bets rather than a small number of large bets. b. can be reduced by increasing the number of stocks in a portfolio. c. Both A and B are correct. d. Neither A nor B are correct.
Which of the following individuals is not hurt by inflation?
A. Akshay, who borrowed $1,000 from a friend and agreed to pay the same amount one year later, but during the year, prices increased by 10 percent. B. Vjiay, who lent his friend $1,000 and agreed to accept repayment of the same amount one year later, but during the year, prices increased by 10 percent. C. Randall, who lives on a fixed income of $800 per month. D. Asuza, who keeps her savings in the form of cash in a safe at home.