A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases in two cities
In Philadelphia, daily egg purchases increased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased from 300 to 400 dozens. The price elasticity of demand is therefore A) lower in the smaller city as would be expected.
B) greater in the smaller city as would be expected.
C) certainly affected by population differences in different markets.
D) the same in Philadelphia as in Dover.
D
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In 2014, foreign purchases of U.S. corporate stocks and bonds
A) doubled. B) grew at a faster pace than foreign investment in U.S. corporate bonds. C) grew at a faster pace than foreign investment in U.S. government bonds. D) fell.
Which of the following scenarios would be most likely to cause the shift in the demand of loanable funds from D0 to D1, shown in the following diagram?
a) A decrease in investment tax credits. b) A technological advancement that increases productivity. c) A decrease in business taxes. d) The lifting of business regulations.
The term ceteris paribus is an economic assumption that means
A) let the buyer beware. B) logical common sense. C) the detail is in the interrelationship. D) other things being equal.
Bank C promises to pay a compound annual interest rate of 6 percent, while Bank S pays an 8 percent simple annual interest rate on deposits. If you deposit $1,000 in each bank, after 10 years, your deposit in Bank C equals ________, while your deposit in Bank S equals ________.
A. $1,600; $2,159 B. $1,600; $1,800 C. $1,791; $1,800 D. $1,060; $1,800