Suppose the price of a box of cereal rises from $4 to $6. Using the midpoint method, what is the percentage change in price?
A) 50 percent
B) 40 percent
C) 33 percent
D) 67 percent
E) None of the above answers is correct.
B
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The Federal Reserve System consists of which of the following?
A. Federal Deposit Insurance Corporation and Controller of the Currency B. Board of Governors and the 12 Federal Reserve Banks C. U.S. Treasury Department and Bureau of Engraving and Printing D. Federal Open Market Committee and Office of Thrift Supervision
The income elasticity of demand for movies in the United States is 3.41. If people's incomes decrease by 1 percent, what is the decrease in the quantity of movies demanded?
What will be an ideal response?
Assume the Fed purchases a government security from a private dealer and pays with a Fed check of $100,000 . If this check is deposited by the dealer in a bank with a 10 percent required reserve ratio, the bank can extend new loans in the amount of:
a. $20,000. b. $90,000. c. $100,000. d. $120,000.
The growing federal budget deficit in the 1980s was accompanied by a
a. growing trade surplus. b. growing trade deficit. c. shrinking trade deficit. d. shrinking capital account surplus.