If there is an inverse relationship between variable x and variable y, then an increase in the value of variable x will be accompanied by
A) an increase in the value of variable y.
B) a decrease in the value of variable y.
C) no change in the value of variable y.
D) variable y reaching its maximum value.
B
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Which of the following will lead to a decrease in the gross domestic product of a country, all other variables remaining unchanged?
A) An increase in exports B) An increase in the expenditure on investment C) An increase in imports D) An increase in the expenditure on consumption
A group price discriminator sells its product in Florida for three times the price it sets in New York. Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2.0, the demand in Florida
A) has an elasticity of -6.0. B) is more price elastic than the demand in New York. C) has an elasticity of -1.2. D) has an elasticity of -0.67.