When El Torito Restaurant is deciding to open a new restaurant location in another town, it is making a ________ decision

Demand is price inelastic if ________ percentage change in the price leads to a ________ percentage change in the quantity demanded

A) a small; large B) a large; small C) any; large D) Both answers A and B are correct. E) None of the above answers is correct.

Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:

A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.