If a 10 percent increase in the price of gasoline results in a 2 percent decrease in the quantity demanded of gasoline, then the elasticity of demand for gasoline is:
a. equal to 0.2 and demand is inelastic.
b. equal to 0.2 and demand is elastic.
c. equal to 0.02 and demand is elastic.
d. equal to 0.5 and demand is inelastic.
e. equal to 0.5 and the demand is elastic.
a
Economics
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The fastest-growing part of the federal budget is
A) national defense. B) payments for services rendered. C) entitlements. D) government salaries.
Economics
If the dollar depreciates relative to other currencies, which of the following is true? a. It takes more of the other currency to buy a dollar
b. It takes less of the other currency to buy a dollar. c. There is no change in the amount of the currency needed to buy a dollar. d. Not enough information to determine.
Economics