Jaycee Jeans sold 40 pairs of jeans at a price of $40. When it lowered its price to $20, the quantity sold increased to 60 pairs. Calculate the absolute value of the price elasticity of demand. Use the midpoint formula
A) 1.67 B) 1.0 C) 0.6 D) 0.53
C
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Non-activists believe that the IS curve is
A) very flat and that real output is sometimes very sensitive to monetary policy in the short run. B) very steep and that real output is sometimes very sensitive to monetary policy in the short run. C) very flat and that real output is not sensitive to monetary policy in the short run. D) very steep.
Cab drivers operating from JFK Airport to the City of New York legally must charge a specific fare. This is an example of
A) social regulation. B) economic regulation. C) the market share test. D) the rate of return test.
The deregulation of AT&T was possible primarily because
a. CAB was abolished b. of satellite technology developments c. no competitors wanted to enter the market d. AT&T is a natural monopoly e. AT&T kept its monopoly on telephones, but not lines
An increase in the money supply will cause which of the following to occur?
A. a rightward shift of the aggregate demand curve B. a leftward shift of the aggregate supply curve C. a rightward shift of the aggregate supply curve D. a leftward shift of the aggregate demand curve