If your income goes up by 2% and, in response, the quantity demanded of good x rises by 3%, the income elasticity of demand would be:
a. 1.5
b. 6
c. 3
d. .20
a
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How does the natural rate hypothesis relate to the AS-AD model?
What will be an ideal response?
In the United States between 1981 and 2012, the
A) nominal wage rate increased more than the real wage rate. B) real wage rate increased more than the nominal wage rate. C) nominal and real wage rates increased the same amount. D) real and the nominal wage rates decreased the same amount. E) nominal wage rate decreased and the real wage rate increased.
At $5 per cup, customers will buy 8 cups of coffee per week. At a price of $3, consumers are willing to buy 12 cups per week. The elasticity of the market demand curve for coffee between P = $5 and P = $3 (dropping all minus signs) is
A. 0.40. B. 1.0 C. 1.25. D. 0.80.
Which of the following economies is an example of a mixed system?
a. The United States. b. The United Kingdom. c. Sweden. d. All of these.