Price elasticity of demand is calculated as the ratio of the change in quantity demanded to the change in price.
Answer the following statement true (T) or false (F)
True
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How do public goods differ from common pool resources? Explain
What will be an ideal response?
What is the argument against the use of autonomous tightening of monetary policy in response to a credit-driven asset-price bubble?
What will be an ideal response?
When property rights are poorly defined,
a. positive or negative externalities may result b. the market cannot generate an equilibrium price c. the market price becomes highly unstable d. the market must be relied upon to generate efficient allocation of resources e. no externalities can exist
Refer to the diagram. If the supply of loanable funds is S 0 and the demand for loanable funds is D 0 , the equilibrium interest rate and quantity of funds borrowed will be:
A. G and A.
B. F and A.
C. F and C.
D. E and A.