What is the main difference between the law of demand and the price elasticity of demand?
Please provide the best answer for the statement.
The law of demand tells you that quantity demanded will increase as price falls, or conversely, that quantity demanded will decrease as price rises. So, the law of demand says there is an inverse relationship between price and quantity demanded. By contrast, the price elasticity of demand tells you “how much” quantity demanded changes when price changes. It shows the responsiveness of a change in quantity demanded to a change in price.
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In the years immediately following the passage of the American Recovery and Reinvestment Act, interest rates ________, and the prices of goods and services ________.
A. remained high; barely changed B. fell dramatically; rose at higher-than-normal rates C. rose sharply; fell sharply D. remained low; rose at lower-than-normal rates
Options are more flexible than forward contracts.
a. true b. false
Economic growth is defined as:
A) an increase in the level of consumption. B)an increase in either real GDP or real GDP per capita. C) an increase in the overall general price level. D) an increase in the nominal GDP.
An economy produces 500,000 tables valued at $100 each. Households purchase 100,000 tables, of which 50,000 are imported. Businesses purchase 200,000 domestically produced tables, the government purchases 100,000 domestically produced tables, and 50,000 domestically produced tables are sold abroad. At the end of the year, the table manufacturers hold the unsold tables in inventory. What is value of GDP?
A. $50 million B. $45 million C. $40 million D. $5 million