Calculate the elasticity of demand when an increase in supply causes the equilibrium price and quantity to change from $9 and 2,000 to $7 and 3,000, respectively
Elasticity of demand = Percentage change in quantity demanded/Percentage change in price. Using the average quantities and average prices to calculate elasticity, we obtain an elasticity of 5/3, or 1.66.
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The impact of monetary policy on the exchange rate is emphasized by
A) supply-side economists. B) Monetarists. C) Keynesians. D) rational expectations theorists.
A business produces 5,000 units per month. It spends $12,000 on raw materials. It pays wages of $20,000 . Other costs include $50,000 for rent, paid by the month. In order to break even the selling price per unit will have to be:
a. $25.20 b. $16.4 c. $20.30 d. $28
In considering the criteria for an ideal voting system, the idea of an irrelevant alternative refers to:
A. when an option is added to a vote and is unrelated to the issue being voted on. B. different voting methods that could alternatively be used, but would not change the outcome. C. when an option is added to a vote and has no realistic chance of winning. D. different voting methods that could alternatively be used, and could change the outcome.
An example of a transaction that will be a surplus item on the U.S. balance of payments is
A. a Nissan plant in Tennessee buying parts from the main plant in Japan. B. the purchase of a BMW by an American. C. a gift of cotton from the United States government to Egypt. D. the purchase of Alphabet stock by a German resident.