"The percentage change in quantity demanded divided by the percentage change in price" represents
A) the law of demand.
B) the law of one price.
C) the price elasticity of demand.
D) the responsiveness of consumers to a change in quantity demanded.
E) none of the above.
C
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If Nate takes out a $5,000 loan for one year at 10 percent annual interest, the principal is:
A. $5,000. B. $5,500. C. $500. D. $1000.
Some luxury product manufacturers will purposefully raise prices on their goods in order to reduce sales volume. This strategy may successfully increase sales revenue if the luxury goods are subject to the ________ effect and have relatively ________ demand.
A. bandwagon; elastic B. snob; inelastic C. bandwagon; inelastic D. snob; elastic
What is the change in total welfare as a result of the tariff on shoes as shown in Exhibit 1?
a. loss of areas d, e, and f
b. loss of areas d and f
c. gain of area e
d. gain of area g
During times of inflation conservative economists would be most in favor of
A. spending cuts. B. spending increases. C. tax cuts. D. tax increases.