Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price decreases from $16 to $14 is
A. -3.29.
B. -1.37.
C. -0.33.
D. -1.
Answer: B
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Total revenue increases if the price of the good
A) rises and demand is elastic. B) rises and demand is inelastic. C) rises and demand is unit elastic. D) falls and supply is inelastic. E) falls and demand is unit elastic.
Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation?
A) export promotion B) import substitution C) international commodity agreements D) Infant Industry promotion E) intra-industry trade practice
Higher marginal propensities to consume and invest will make the slope of the aggregate expenditure function steeper
Indicate whether the statement is true or false
If velocity is constant and equal to 2, a $10 billion shift of the LM curve to the left will be produced by a __________ in the money supply
A) $5 billion increase B) $5 billion decrease C) $20 billion increase D) $20 billion decrease