If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars demanded, then the demand for used cars is

A) elastic.
B) inelastic.
C) unit elastic.
D) arc elastic.

B

Economics

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The most direct way in which money eliminates the need for a double coincidence of wants is through its use as a

A) medium of exchange. B) standard of deferred payment. C) store of value. D) unit of account.

Economics

The role that prices play in distributing scarce goods and services to those consumers who value them the most highly is known as the ________ function of price.

A. multiplicative B. allocative C. rationing D. equilibrium

Economics