When prices on science fiction novels decreased by 5%, the quantity demanded increased by 20%. The price elasticity of demand is
a. 4.
b. 20.
c. 0.25.
d. 5.
a. 4.
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When monetary equilibrium occurs,
A) the demand for final goods and services equals the supply of final goods and services. B) gross business investment falls to zero. C) relative prices remain constant. D) the quantity supplied of money equals the quantity demanded.
Refer to Figure 2-10. If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A) 16 thousand spoons B) 26 thousand forks C) 20 thousand forks D) 0 spoons
The relationship between real consumption spending and real disposable income
A) is direct. B) is inverse. C) plots a vertical line. D) plots a horizontal line.
The quantity of RGDP supplied will decrease in both the short run and long run when the price level falls
a. True b. False Indicate whether the statement is true or false