When the percentage change in quantity demanded is less than the percentage change in price, ceteris paribus,
A. Elasticity is impossible to calculate.
B. Demand is elastic.
C. Demand is inelastic.
D. Demand is unitary elastic.
Answer: C
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An asset-price bubble entails ________
A) increasing the value of one's assets to cover liability losses B) an increase in asset prices above their fundamental economic value C) reducing the number of participants in the underlying financial derivatives market D) an economic skins game
Which of the following will not lead to an increase in the demand for labor for a firm producing automobiles?
A) a decrease in labor productivity B) an increase in the price of robots that are used to solder parts of the car together C) an increase in the demand for automobiles D) an increase in the price of automobiles
The skills, training, and education possessed by workers that contribute to economic growth are known as:
A. Saving. B. Human capital. C. Natural resources. D. Output of labour.
Chris pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon rate. One year later, after receiving the first coupon payment, Chris sells the bond. If the current one-year interest rate on government bonds is 7 percent, then the price Chris receives is:
A. less than $10,000. B. greater than $10,000. C. $700. D. $10,000.