If consumers respond to a 10% price reduction by buying twice as much of a particular good, we would conclude that:
A. there was excess demand at the original price.
B. the price elasticity of demand at the original price was less than one.
C. the price elasticity of demand at the original price was greater than one.
D. there was excess supply at the original price.
Answer: C
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Hyperinflation can be caused by
A) the central bank selling bonds to the government. B) the government selling bonds to the public. C) the central bank selling bonds to the public. D) the government selling bonds to the central bank.
Which of the following is the best definition of what economists define as total income?
A) payment for labor services B) payment for labor services and for ownership of other factors of production C) payment for labor services, for use of other factors of production, and gifts and government transfers D) inheritance
Many U.S. business leaders argue that the current state of U.S. net exports is the result of
a. U.S. export subsidies. b. free trade policies of foreign governments. c. unproductive U.S. workers. d. unfair foreign competition.
Corporate taxes are a direct tax.
Answer the following statement true (T) or false (F)