If Sam, the Pizza Man, lowers the price of his pizzas from $6 to $5 and finds that sales increase from 400 to 600 pizzas per week, then the demand for Sam's pizzas in this range is:

A. inelastic.
B. elastic.
C. unit elastic.
D. inferior.

Answer: B

Economics

The vertical axis of the aggregate demand and aggregate supply graph has the

a) output of goods. b) output of services. c) real GDP. d) the price level.

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Economics

In Figure 3-4 above, the marginal propensity to consume is

A) 500. B) 2.5. C) 0.6. D) 0.4. E) 1.5.

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Economics