PriceQuantity Demanded$4300$3400$2500$1600Refer to the above data. What is the elasticity of demand between the prices of $3 and $2?
A. 0.22
B. 0.56
C. 1.22
D. 0.40
Answer: B
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
When the price level and the unemployment rate both rise, then the economy experiences cost-push inflation
Indicate whether the statement is true or false
In the long run,
a. all of the firm's input quantities are variable. b. the firm can vary the quantities of some but not all inputs. c. managers become less efficient. d. the total cost of producing any given level of output is greater than or equal to the short-run total cost of producing that level of output.
The required reserve ratio in an economy is 12.8 percent. If two banks, Bank A and Bank B, receive deposits of $25,000 and $37,500, respectively, then the value of the money multiplier in the economy is: a. 10.00. b. 12.50. c. 6.25
d. 8.00.