If the price of sandals increases by 10 percent and the quantity demanded falls by 20 percent, then the price elasticity of demand in absolute value is
A. 20 percent.
B. 2.
C. 2 percent.
D. .2.
Answer: B
You might also like to view...
Refer to Figure 13.2. If the figure is viewed as a two-player game between Oliver and George, there would be
A) no Nash equilibria. B) one Nash equilibrium where both players end up at the M position. C) two Nash equilibria, one where Oliver ends up at position L4 and George ends up at position C4, and one where both players end up at position M. D) five Nash equilibria, each represented by the two players ending up an equal distance from M.
The original comparative advantage model that used the relative abundance of factors of production to explain comparative advantage assumed that countries:
a. employed all four factors of production; land, labor, capital, and entrepreneurship. b. employed only two factors of production; labor and capital. c. employed only two factors of production; land and entrepreneurial ability. d. worked with a fixed capital stock. e. were free to vary their employment of only one factor of production; labor.
Assume that a Tesla Model 3 sells for $30,000 in the United States and that the exchange rate is $1 = 0.8 euro. For purchasing power parity to hold, the same car in Europe should sell for
A. 36,250 euros. B. 37,500 euros. C. 24,000 euros. D. 30,000 euros.
The relationship between inflation and unemployment is given by ? = ?e - 4(u - 
).(a)Draw a diagram showing a long-run Phillips curve and two short-run Phillips curves that contain the following points: A: ? = .04, ?e = .04 B: ? = .08, ?e = .08 C: ? = .04, ?e = .08 D: ? = .08, ?e = .04Label points A, B, C, and D in your diagram.The unemployment rate at point A equals .05.(b)What are the values of the natural rate of unemployment and the unemployment rates at points B, C, and D?
What will be an ideal response?