The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon, then the maximum that Dana is willing to pay for the 8th gallon of ice cream is

The value of the absolute price elasticity of demand for good A is 4. The absolute price elasticity for good B is 1. Which good's quantity demanded is more responsive to a change in price?

A) Good A B) Good B C) They are equally responsive. D) Not enough information is given.

According to Keynesians, an increase in the money supply will have its least impact on GDP when the aggregate demand curve intersects:

A. the horizontal portion of the aggregate supply curve. B. the vertical portion of the aggregate supply curve. C. the upward sloping portion of the aggregate supply curve. D. either the horizontal or upward sloping portion of the aggregate supply curve.