If the price elasticity of demand is 2, this means that a ________ increase in price causes a ________ decrease in quantity demanded.
A. 15%; 100%
B. 15%; 10%
C. 20%; 40%
D. 30%; 20%
Answer: C
You might also like to view...
The greater the degree of substitutability between capital and labor, the greater will be the downward shift in the cost curve when wage falls.
Answer the following statement true (T) or false (F)
Explain how each of the following will affect the relative values of the dollar and the euro used in France: • Income growth higher in the United States than in France. • Inflation higher in France than in the United States. • A real interest rate higher in the United States than in France
According to the wealth effect, aggregate demand slopes downward (negatively) because
A. lower prices decrease the value of money holdings and consumer spending decreases. B. lower prices reduce money holdings, increase lending, interest rates fall, and investment spending increases. C. lower prices increase money holdings, decrease lending, interest rates rise, and investment spending falls. D. lower prices increase the value of money holdings and consumer spending increases.
Linda earned an income of $3,000 per month, which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging, and other expenses. So far, she has managed to save $20,000. What are her savings per month before the increase income and after the increase in income?
What will be an ideal response?