In the figure above, when the price rises from $3 to $4, the price elasticity of demand is
A) 1.4.
B) 2.
C) 0.71.
D) 0.4.
E) 1.
A
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Perfect flexible prices are a critical assumption in the
a. classical model. b. Keynesian model. c. monetarist model. d. new Keynesian model. e. both a and c.
The decrease in investment that occurred as a result of banks being unwilling to lend to businesses after the collapse of the housing bubble caused aggregate:
A. supply to increase. B. demand to increase. C. supply to decrease. D. demand to decrease.
Which Federal Reserve Bank president is always on the Federal Open Market Committee?
A) New York B) Chicago C) St. Louis D) Boston
If households pay a fixed annual fee for trash disposal,
A) households will all tend to produce the same amount of garbage. B) households have no incentive to cut back on the amount of garbage they generate. C) that fee will provide households with an incentive to cut back on the amount of garbage they generate. D) that fee will discourage households from throwing out reusable materials. E) that fee will discourage households from throwing out toxic or otherwise harmful materials.