If the elasticity of supply is much greater than the elasticity of demand, a subsidy awarded to demanders will
a. benefit the demanders more than the suppliers
b. benefit the suppliers more than the demanders
c. the benefit of the subsidy will be equally shared between the demanders and the suppliers
d. allow the demanders to be the only ones who will benefit
e. Without more information as to the amount of the subsidy, who will benefit more can not be determined
A
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A depreciation of the U.S. dollar relative to the euro would tend to
A) increase U.S. imports from Germany. B) increase U.S. exports to Germany. C) decrease U.S. exports to Germany. D) increase both U.S. imports from Germany and U.S. exports to Germany.
Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000 . She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%. Emily's total opportunity cost of capital is
a. $2,000. b. $4,000. c. $12,000. d. $14,000.