The reason for the use of the "averaging equation" to compute the price elasticity of demand is that
a. it would be impossible to connect a change in price specifically to a change inquantity demanded otherwise
b. the elasticity within a price range differs depending on whether you are measuring price increases or decreases
c. otherwise, the answer is sometimes negative and sometimes positive
d. it measures sensitivity to price changes more accurately
e. economists find the average elasticity to be a useful tool in their research
B
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Use the following table with data for a private closed economy (an economy with only a private sector and no international trade) to answer the next question.All figures are in billions of dollars.Expected Rate of ReturnInvestmentConsumptionGDP10%$0$400$4008100500600620060080043007001,00024008001,20005009001,400An increase in the real interest rate from 2% to 6% will
A. increase the equilibrium level of real GDP by $400 billion. B. decrease the equilibrium level of real GDP by $400 billion. C. increase the equilibrium level of real GDP by $300 billion. D. decrease the equilibrium level of real GDP by $200 billion.
List the three basic economic questions that all societies must answer
What will be an ideal response?
In the U.S. economy, services account for over half of all consumer expenditures.
Answer the following statement true (T) or false (F)
Microprocessors have become faster and faster since their invention in 1971, with their performance approximately doubling every 18-24 months. This trend of improvement has become known as
A. the Intel effect. B. information clustering. C. Gates's law. D. Moore's law.