Suppose the price elasticity of demand for good A is 1.25 . If the price of good A increases by 20%, what will be the resulting percentage change in quantity demanded for good A?

If UIP holds and the home currency is expected to appreciate by 4%, then the home interest rate is:

a. 6% b. 5% c. 4% d. Not enough information is provided to answer the question

The equilibrium wage and quantity of labor in the market for skilled workers is determined by

A) the demand and supply of labor. B) the strength of labor unions. C) the market value created by the output of these skilled workers. D) the monopsony power of firms.