Suppose a 10% increase in the price of aspirin leads to a 5% decrease in the quantity demanded of aspirin. The demand for aspirin, therefore, is
A. inelastic.
B. perfectly inelastic.
C. unit elastic.
D. elastic.
Answer: A
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When a central bank intervenes in the ________, their intention is to ________
A) spot market; convey a clear signal to the markets B) futures market, hide its actions from the markets C) forward market, hide its actions from the markets D) swap markets, convey a clear signal to the markets
If average Americans start to pay off the huge credit card debt they now hold, then
A) a shift in the supply of loanable funds will cause interest rates to rise. B) a shift in the supply of loanable funds will cause interest rates to fall. C) a shift in the demand for loanable funds will cause interest rates to rise. D) a shift in the demand for loanable funds will cause interest rates to fall. E) there will be an excess demand for loanable funds.
Division of labor allows people to do tasks for which they have greater natural ability
a. True b. False
If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.
A) decrease; increase B) decrease; decrease C) decrease; remain constant D) increase; either increase, decrease, or remain constant