Suppose that the percentage change in demand is -20%, the price elasticity of demand is 3, and the price elasticity of supply is 2. What is the percentage change in the equilibrium price?
A. -4%
B. 4%
C. 100%
D. -100%
Answer: A
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Which of the following will tend to cause an increase in technology?
A) increases in human capital B) an increase in research and development expenditures C) the development of new ideas D) all of the above
A $0.10 tax levied on the sellers of chocolate bars will cause the
a. supply curve for chocolate bars to shift down by $0.10. b. supply curve for chocolate bars to shift up by $0.10. c. demand curve for chocolate bars to shift down by $0.10. d. demand curve for chocolate bars to shift up by $0.10.
A college must decide if it wants to offer more evening and weekend classes. This decision involves answering the economic question of "for whom to produce."
Indicate whether the statement is true or false
Refer to the above figure. Suppose that Cheerios and Apple Jacks are substitutes. Which diagram shows the effect on the demand for Cheerios when the price of Apple Jacks cereal has increased?
A) A B) B C) neither graph D) both graphs