A government wants to reduce electricity consumption by 40%. The price elasticity of demand for electricity is -10. The government must ________ the price of electricity by ________.
A. raise; 1.25%
B. raise; 0.25%
C. raise; 4.0%
D. lower; 0.25%
Answer: C
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Assume the price of product A increases from $1 to $1.50, while the price of competing product B increases from $1.50 to $2.00
Based on the information, what we can say about the absolute and relative price differences between the two products and the relative attractiveness of the two products to consumers.
The motivation for an individual citizen to spend the necessary time and effort to resist an interest group is minimal, even if she had a guarantee that this resistance would be effective
a. True b. False Indicate whether the statement is true or false
According to the equation of exchange, if the money supply is $800 million, real GDP is $3,000 million, and nominal GDP is $4,000 million, then the velocity of money is equal to:
a. 3.5. b. 1.7. c. 10.3. d. 5. e. 2.
Which of the following is correct if there is an adverse supply shock?
a. The short-run aggregate supply curve and the short-run Phillips curve both shift right. b. The short-run aggregate supply curve and the short-run Phillips curve both shift left. c. The short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left. d. The short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right.