Suppose a hurricane decreased the supply of oranges so that the price of oranges rose from $120 a ton to $180 a ton and quantity sold decreased from 800 tons to 240 tons. What is the absolute value of the price elasticity of demand?
A) 0.11 B) 0.37 C) 2.69 D) 9.33
C
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Capital gains are the profit earned from the sale of
A) stocks. B) real estate. C) bonds. D) all of the above.
If a nation's central bank increased domestic interest rates, the nation's exchange rate would change if the country's exchange rate was a
A) a flexible exchange rate. B) a fixed exchange rate. C) a crawling peg. D) a nominally fixed exchange rate.
To maintain a fixed exchange rate, a central bank
a. must buy up any excess supply of its currency at that rate b. must buy up any excess demand for its currency at that rate c. must maintain a fixed money supply d. must also maintain a fixed interest rate target e. should "buy low and sell high"
Use the figure below, which shows a linear demand curve and the associated total revenue curve, to answer the question.
The marginal revenue of the 700th unit is $________ and demand is ________ at this point.
A. 15; elastic B. -20; elastic C. 15; inelastic D. -20; inelastic