If a 50 percent increase in the price of pizza results in a 25 percent decrease in the quantity demanded of pizza, then the price elasticity of demand for pizza:
a. is equal to 0.5 and demand for pizza is inelastic.
b. is equal to 0.5 and demand for pizza is elastic.
c. is equal to 2 and demand for pizza is elastic.
d. is equal to 2 and demand for pizza is inelastic.
e. cannot be determined from the information provided.
a
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Following the imposition of the Smoot-Hawley tariff
A) international trade continued to expand. B) more than 40 countries imposed higher tariffs of their own. C) employment in the United States expanded rapidly. D) Two of the above.
Compared with the market clearing price of a health care service covered by Medicare, the Medicare program pays a ________ price to health care providers and charges a ________ price to consumers
A) lower, lower B) lower, higher C) higher, lower D) higher, higher
According to economic theory what is the optimal percentage of GDP to be spent on medical care?
a. 6 percent. b. 8 percent. c. 10 percent. d. 12 percent. e. There is no widely-accepted way to determine the optimal percentage.
When the dollar appreciates, the prices of imported inputs
a. fall and aggregate supply shifts outward. b. fall and aggregate supply shifts inward. c. rise and aggregate supply shifts outward. d. rise and aggregate supply shifts inward.