If the price of a cup of coffee increases by 50 percent, the quantity demanded decreases by 50 percent. The price elasticity of demand is:
A. zero.
B. elastic.
C. unit elastic.
D. inelastic.
Answer: C
Economics
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If disposable income decreases from $1800 to $1500 and MPC = 0.75, then saving will:
A. Increase by $225 B. Decrease by $225 C. Increase by $75 D. Decrease by $75
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