The price of season tickets to a performing arts theater decreases by 3 percent. As a result, the quantity demanded increases by 6 percent. The price elasticity of demand for season tickets is:
A. 0.5
B. 9
C. 2
D. 18
C. 2
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What is the exchange rate between the dollar and the British pound if a pair of American jeans costs 60 dollars in New York and 30 Pounds in London?
A) 1.5 dollars per British pound B) 0.5 dollars per British pound C) 2.5 dollars per British pound D) 3.5 dollars per British pound E) 2 dollars per British pound
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
Purchasing power parity is the theory that, in the long run, exchange rates should be at a level such that equivalent amounts of any country's currency
A) should earn the same real rate of return. B) are valued inversely relative to the size of its GDP. C) will equalize nominal interest rates across countries. D) allow one to buy the same amount of goods and services.
If a good has "snob appeal," consumers may purchases less when the price falls
a. True b. False Indicate whether the statement is true or false