According to the text, the price elasticity of demand for bath tissue has been estimated to be -2.42. This implies that a 10 percent decrease in the price of bath tissue would cause the quantity demanded of bath tissue to:
A) increase by 2.4 percent.
B) decrease by 2.4 percent.
C) increase by 24.2 percent.
D) decrease by 24.2 percent.
C
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Use the following given market-for-money diagrams to answer the next question.
The total demand for money is shown by
A. D1. B. D2. C. D3. D. S.
The 1920s was a period of alcohol prohibition in the United States. During the 1920s,
A) the purchase and sale of alcohol was illegal. B) people coordinated their alcohol production and consumption activities in illegal, underground markets. C) the supply of alcohol became quite inelastic. D) all of the above were true. E) none of the above were true.
A market in which the Herfindahl-Hirschman Index is 1,000 is regarded by the Federal Trade Commission as
A) moderately concentrated. B) concentrated. C) competitive. D) monopolistic.
A variable that tends to move later than aggregate economic activity is called
A) a leading variable. B) a coincident variable. C) a lagging variable. D) an acyclical variable.