If the price of chocolate goes up 20% and quantity demanded falls by 5%, demand is _______.
Fill in the blank(s) with the appropriate word(s).
inelastic
You might also like to view...
Define the production function. Discuss why the production function exhibits diminishing returns
What will be an ideal response?
The balance of payments ____
a. b and e b. is always zero c. with some nations is different than it is with others d. is negative when the nation runs a trade deficit e. can only be expanded when the government has foreign exchange reserves
Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and nominal value of the domestic currency rises. b. The real risk-free interest rate falls, and nominal value of the domestic currency falls. c. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. d. The real risk-free interest rate rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
For all intents and purposes, the Great Depression ended in
A. 1933. B. 1937. C. 1941. D. 1945.