Suppose that the percentage change in demand is -20%, the price elasticity of demand is 3, and the price elasticity of supply is 2. What is the percentage change in the equilibrium price?
A. -4%
B. 4%
C. 100%
D. -100%
Answer: A
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Refer to Scenario 5.7. As a risk-neutral executive, Natasha
A) is indifferent between projects D and E. B) prefers project E to project D, but do not necessarily consider E the best. C) prefers project E to all other projects. D) seeks the highest "profit if successful" of all the projects. E) seeks the project with the most even odds.
Which of the following would economic freedom lead to?
a. A higher standard of living b. Better living conditions c. Longer life expectancy d. Better education e. All of these
An individual who voluntarily leaves one job and spends a period of time seeking another is considered: a. frictionally unemployed. b. cyclically unemployed
c. structurally unemployed. d. seasonally unemployed.
"Logrolling" is
A) the exchange of votes to gain support for legislation. B) pressure that special interest groups place on politicians. C) when politicians refuse to go into detail and speak only in generalities. D) the process by which government agencies make sure they spend their allotted annual budget.