Calculate the MPC.
MPC = $38,000/$50,000 = 38/50 = .76
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When we use the midpoint method to compute the price elasticity of demand we use
A) the original quantity and the average price. B) the original price and the average quantity. C) the average price and the average quantity. D) either the original or new price, and the average quantity. E) the average price and the original quantity.
When the quantity of coal is measured in kilograms instead of pounds, the demand for coal becomes
A) more elastic. B) less elastic. C) neither more nor less elastic. D) undefined.
Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
a. Buy U.S. government securities. b. Force the Treasury to reduce the national debt. c. Raise the discount rate. d. Increase the reserve requirements.
If an increase in the price of good X causes the demand curve for product Y to shift to the right, then X and Y are most likely to be which of the following?
a. Shoes and laces b. Tennis balls and tennis rackets c. Turkey and chicken d. Knives and forks e. DVD players and DVDs