Which of the following examples shows inelasticity?
a. When the price of diamonds increases 8 percent, the quantity demanded decreases 20 percent.
b. When the price of avocados increases 3 percent, the quantity demanded decreases 4 percent.
c. When the price of camcorders increases 10 percent, the quantity demanded decreases 5 percent.
d. When the price of bicycles increases 5 percent, the quantity demanded decreases 8 percent.
c. When the price of camcorders increases 10 percent, the quantity demanded decreases 5 percent.
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Firms are able to expand their operations by acquiring funds from households. They can do this directly through financial markets such as ________, or indirectly through financial intermediaries such as ________
A) stock markets; bond markets B) stock markets; banks C) banks; bond markets D) bond markets; stock markets
The decision by the Municipal Transit Authority to either refurbish existing buses, buy new large buses, or to supplement the existing fleet with mini-buses is an example of:
a. independent projects b. mutually exclusive projects c. contingent projects d. separable projects e. none of the above
What is the best method to avoid becoming defensive when receiving feedback?
Suppose that the economy is producing above potential GDP and the Fed implements the correct change in monetary policy, but not until after the economy has passed the peak of the boom. Then
A) the Fed's contractionary policy may result in too large of a decrease in GDP. B) the Fed's contractionary policy may result in too small of an increase in GDP. C) the Fed's expansionary policy may result in too small of a decrease in GDP. D) the Fed's expansionary policy may result in too large of an increase in GDP.