If the income elasticity of demand for a good equals to 2.56, a 10 percent increase in consumer income will result in a 2.56 percent increase in the quantity demanded of the good

After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?

A. Price will increase, and quantity will decrease. B. Price will decrease, and quantity will decrease. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will increase.

The financial crisis of 2007-2009 has made which of the following regulatory goals a top priority for government:

A. minimum capital requirements. B. promotion of competition. C. disclosure of accounting information. D. avoidance of systemic risk.