If the price elasticity of demand for a product is equal to 4, a 1 percent increase in price of the product will cause the quantity demanded to _____ by _____ percent
a. increase; 0.25
b. decrease; 0.25
c. increase; 4
d. decrease; 25
e. decrease; 4
e
Economics
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Which of the following is false?
A) Under free banking, banks would not be subject to any special regulations beyond those which are required of other businesses. B) Under free banking, banks would be allowed to issue their own currency. C) The government would largely control the actions of banks under free banking. D) The market forces would raise or lower the money supply under free banking.
Economics
A demand curve that is horizontal indicates that the commodity
A) has few substitutes. B) must be very cheap. C) is a necessity. D) has a large number of substitutes.
Economics