If the price of hairbrushes decreases by 20 percent, the quantity demanded increases by 2 percent. The price elasticity of demand is:
A. -0.1 and is inelastic.
B. 10 and is elastic.
C. 10 and is inelastic.
D. -0.1, and is elastic.
Answer: A
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A discount bond involves
A) interest payments from the borrower to the lender periodically during the life of the loan. B) payment by the borrower to the lender of the face value of the loan at maturity. C) no payment of principal by the borrower to the lender. D) payment of interest by the borrower to the lender every six months during the life of the loan.
Ray just got a raise, and decided to splurge on a fancy dinner to celebrate. The change to Ray's demand for fancy dinners could be measured by the:
A. price elasticity of supply. B. price elasticity of demand. C. cross-price elasticity. D. income elasticity of demand.
Even the demand for a necessity such as gasoline will respond to a change in price, especially over a longer time horizon
a. True b. False Indicate whether the statement is true or false
When a government bans prostitutions, it may do so because it considers prostitution to be a:
A. progressive good. B. regressive good. C. public good. D. demerit good.