We say that a good has elastic demand whenever the absolute value of the price elasticity of demand is greater than one. A one percent change in price therefore causes
A. a greater than one percent change in quantity demanded.
B. a change of less than one percent in the quantity demanded.
C. exactly a one percent change in the quantity demanded.
D. a change that cannot be determined based on one percent.
Answer: A
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A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.90 per unit. The marginal revenue of the 151st unit of output is
a. -$5.10. b. -$0.10. c. $2.45. d. $5.10.
The demand for money curve depicts
A. a direct relationship between the quantity of money demanded and the interest rate. B. an inverse relationship between the quantity of money demanded and the interest rate. C. an inverse relationship between the quantity of money demanded and the quantity of bonds demanded. D. a direct relationship between the quantity of money demanded and the quantity of bonds demanded.
Why is recent immigration a vital contributor to the American economy?
What will be an ideal response?
If C = $400, I = $100, G = $50, NX = $30, and NFP = $5, how much is GDP?
A) $580 B) $575 C) $585 D) $550