If quantity demanded for rice decreases by 4% when the price of rice increases by 8%, we know that the price elasticity of rice is equal to:

A resident of the U.S. owns a factory in China. Earnings from this factory would be considered as ________

A) exports B) investment income C) transfer income D) imports

A decrease in the price of a factor of production will lead to an increase in the supply of goods that use the factor in production.

a. true b. false