Suppose that in a month the price of oranges increases from $.75 to $1. At the same time, the quantity of oranges demanded decreases from 100 to 80. The price elasticity of demand for oranges (calculated using the initial value formula) is:
A. 0.75.
B. 0.6.
C. 0.25.
D. 20.
Answer: B
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Depreciation of the Japanese yen would lead to
A. outward shift in the aggregate supply curve for Japan. B. upward shift in the aggregate demand curve for Japan. C. downward shift in the aggregate supply curve for Japan. D. inward shift in the aggregate demand curve for Japan.
On January 1, Rick's Photo owned $50,000 of equipment. During the year, the value of the equipment fell by $10,000, plus Rick bought $25,000 in new equipment. Rick's company experienced ________ because ________
A) depreciation of $15,000; depreciation equals investment in new products minus loss in values B) gross investment of $40,000; gross investment equals net investment plus depreciation C) net investment of $15,000; net investment equals gross investment minus depreciation D) gross investment of $15,000; gross investment equals net investment minus depreciation E) net investment of $15,000; net investment equals beginning year financial capital minus depreciations and investment
The aggregate demand–aggregate supply model shows that closing an expansionary gap involves deflation and closing a recessionary gap involves inflation
a. True b. False Indicate whether the statement is true or false
Under a fixed exchange rate regime, what will happen to the balance of payments for the United States and Mexico when the demand for Mexican goods rises? What is the only possible solution to this problem, given the fixed exchange rate?
What will be an ideal response?