The table above gives the demand schedule for peas. Between point C and point D, the price elasticity of demand is

When the price of a normal good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased

A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease

When a Chinese company builds an auto plant in the United States, the immediate result of this Chinese investment in the United States is a ________ item in the U.S. ________ account

A) surplus; current B) surplus; capital C) deficit; current D) deficit; capital