If the quantity of bread demanded rises 2 percent when the price of bread declines 10 percent, then the price elasticity of demand is:
A. 0.2.
B. 2.
C. 5.
D. 10.
Answer: A
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Exports ________ GDP and imports ________ GDP
A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease
If demand is perfectly inelastic
A) then a 1% increase in price leads to a fall in quantity of greater than 1%. B) then a 1% increase in price leads to a fall in quantity of less than 1%. C) then a 1% increase in prices then quantity demanded falls to zero. D) then a 1% increase in price has no effect on quantity demanded.
Which of the following is not an example of an economic policy that affects the level of unemployment?
A. Minimum wage law. B. Efficiency wages. C. At-will employment policies. D. Title IX.
When a tax is levied on a good,
a. government collects revenues which might justify the loss in total welfare. b. there is a decrease in the quantity of the good bought and sold in the market. c. a wedge is placed between the price buyers pay and the price sellers effectively receive. d. All of the above are correct.