In the article "After iPhone Price Cut, Sales Are Up by 200 Percent,"
A. There was no way to calculate the price elasticity of demand.
B. The survey of quantity demanded after a price change for the iPhones showed that iPhones are an inferior good.
C. The demand for iPhones is highly elastic.
D. The demand for iPhones is inelastic.
Answer: C
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Assuming price elasticity of demand is reported as an absolute value, a good with unit elastic demand has an elasticity:
A. between zero and one. B. greater than one. C. less than one, but greater than zero. D. equal to one.
In effect, during the period immediately following World War II, the world was on a(n):
a. gold standard. b. flexible-exchange-rate standard. c. U.S. dollar standard. d. exchange-rate standard dictated by Germany e. pegged-exchange rate standard.
The key indicator of a country's living standard and economic well-being is:
A. the interest rate. B. nominal GDP per person. C. real GDP per person. D. real GDP.
Suppose the Ricardian Equivalence proposition holds (i.e., it is correct). What does this imply about the ability of fiscal policy to affect GDP? Explain
What will be an ideal response?