For a given increase in price, a greater elasticity of demand will result in a greater
a. increase in quantity demanded.
b. increase in demand
c. decrease in quantity demanded.
d. decrease in demand.
c
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According to a study by Thomas Cooley and Gary Hansen, the cost in lost consumption of a 10% per annum rate of inflation is
A) negative. B) approximately 0.001%. C) approximately 0.5%. D) approximately 5.0%.
According to the new classical model,
a. anticipated declines in aggregate demand would move output and employment below the full-employment levels. b. announced declines in aggregate demand do not change output and employment above the full-employment levels. c. anticipated declines in aggregate supply would only put employment below the full-employment level. d. unanticipated declines in aggregate demand would cause output and employment to fall below the full-employment levels. e. both c and d.
Bill can cook dinner in 45 minutes and mow the lawn in 1.5 hours. Eileen can cook dinner in 1.5 hours and mow the lawn in 2 hours. Bill's opportunity cost of mowing the lawn is
a. 1/2 of a dinner b. 2 dinners c. 3/4 of a dinner d. 1-1/3 dinners e. 2-2/3 dinners
Economists define full employment as the level of employment that results when
a. the economy is in an economic boom. b. the rate of unemployment is zero. c. the rate of unemployment has fallen to its historical low of approximately two percent. d. the rate of unemployment is normal, considering both frictional and structural factors.