If the absolute value of slope of the demand curve is 2.5, price is $6 per unit, and the quantity demanded is 8 units, then the price elasticity of demand is:
A. 1.875.
B. 0.3.
C. 0.533.
D. 1.6.
Answer: B
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The supply curve for watches
A) is downward sloping. B) shows the relationship between the quantity of watches firms are willing and able to supply and the quantity of watches consumers are willing and able to purchase. C) shows the supply of watches consumers are willing and able to buy at any given price. D) shows the relationship between the price of watches and the quantity of watches supplied.
Assume that for the third quarter of 2012, actual real GDP was $176.1 billion and potential real GDP was $163.9 billion. According to Okun's law, the cyclical unemployment rate during the third quarter of 2012 was
A) -6.1%. B) -3.7%. C) 3.5%. D) 6.1%.
The decline in output at the onset of the Great Depression was caused primarily by
a. a positive demand shock b. a negative demand shock c. a positive supply shock d. a negative supply shock e. simultaneous shocks to supply and demand
Prices
a. solve the problem of distribution of products among consumers. b. act as rationing devices. c. under laissez faire produce an efficient allocation of resources. d. do all of the above.