Demand is elastic along the upper half of a linear demand curve, which means that a decrease in price will increase the quantity sold by a larger percentage amount.

Explain the statement "There is no such thing as a free lunch."

What will be an ideal response?

The real interest rate can be approximated by

a. adding the nominal interest rate and the inflation rate b. subtracting the nominal interest rate from the inflation rate c. adding last year's nominal interest rate to this year's d. subtracting the inflation rate from the nominal interest rate e. none of the above