Suppose the inverse demand curve for a good is expressed as Q = 50 - 2p. If the good currently sells for $3, then the price elasticity of demand is
A) -3 ? (2/50).
B) -2 ? (50/3).
C) -2 ? (3/44).
D) -3 ? (44/2).
C
You might also like to view...
The above table gives data for the nation of Mojo. At what level of real GDP is the unplanned inventory change equal to $1.75 trillion?
A) $12.0 trillion B) $6.0 trillion C) $9.0 trillion D) $3.0 trillion E) $0.0 trillion
As suppliers and potential suppliers of exhaustible resources continually calculate whether to extract now or in future, and how much to extract, an equilibrium arises when:
a. the cost of extracting such resources is equal to its price. b. the rate of return for such resources equals the rate of interest on alternative uses of the funds. c. the cost of extracting such resources is equal to the price of the commodity using these resources. d. the price of such resources is equal to the rate of interest of bank accounts and other interest-bearing investments. e. the rate of return on alternative investments is equal to the cost of extracting such resources.
The Federal Open Market Committee (FOMC)
A. determines the tax policy of the government. B. lends to the least credit-worthy customers. C. oversees all transactions on the stock market. D. influences the future growth of the money supply.
The policy position that the supply of money should be increased at a constant rate each year is most closely associated with the views of:
A. Monetarism B. Real business cycle theory C. Mainstream economics D. Supply-side economics