Suppose a good has a demand curve given by Q = 20 - 8 × P. What is the price elasticity of demand if the price is $2?
A. -4
B. -1/16
C. 1/2
D. -1/2
A. -4
Economics
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The production of paper creates pollution, an external cost. What happens to the production of paper if the government imposes a tax on paper producers equal to the marginal external cost of the pollution?
What will be an ideal response?
Economics
Which one is a macroeconomic topic?
a. A business decides to buy new software. b. A person decides to return to college. c. The central bank lowers interest rates to stimulate the economy. d. The government issues new environmental regulations.
Economics
A vertical line has a slope of
a. infinity. b. zero. c. undefined. d. 1,000.
Economics
The largest category of federal spending is national defense
a. True b. False Indicate whether the statement is true or false
Economics