If the demand for a good is elastic, the price elasticity of demand is ________
A) greater than 1
B) equal to 1
C) between 0 and 1
D) less than zero
A
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The textbook refers to the following quotation from a Federal Reserve publication:
"Trade is a win-win situation for all countries that participate." But many firms and workers oppose free-trade policies and protests against globalization have become a regular occurrence at meetings of the World Trade Organization. If trade is a "win-win" situation, why is there strong opposition to free trade and globalization?
Pens are normal goods. What will happen to the equilibrium price of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase?
a. Price will rise. b. Price will fall. c. Price will stay exactly the same. d. The price change will be ambiguous.
A tax levied on each unit of pollution is
A. an income tax. B. a emissions fee. C. a flat tax. D. an international tax.
Under a flexible exchange rate system, there is no need for foreign exchange reserves.
Answer the following statement true (T) or false (F)